FIN3704 Assignment 5 (COMPLETE ANSWERS) Semester 2 2024 - DUE 15 October 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us..

FIN3704
Assignment 5
(COMPLETE
ANSWERS)
Semester 2
2024 - DUE 15
October 2024
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Exam (elaborations)
FIN3704 Assignment 5 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 15 October 2024
 Course
 Applied Financial Management (FIN3704)
 Institution
 University Of South Africa (Unisa)
 Book
 ADVANCED FINANCIAL MANAGEMENT (AFM).

FIN3704 Assignment 5 (COMPLETE ANSWERS) Semester 2 2024 - DUE 15
October 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations. Ensure your success with us..

Question 2 (20 Marks) The Port Saint John Water Park
has thought about buying a new log flume ride. The
equipment costs R900 000 to purchase, and installation
costs an additional R56400. The equipment has a six-year
expected life and will be depreciated using the MACRS
seven-year class life. Management anticipates 160 rides
per day, with 45 riders on average per ride. The season
Will last for 130 days per year. The ticket price per rider is
expected to be R6.25 in the first year, with an annual
increase of 5%. The variable cost per rider will be R1.75,
with a total annual fixed cost of R625 000. The ride will be
dismantled after six years at a cost of R354 000, and the