Estimation Assignment | Homework For You

8. The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number of patrons the complex will attract each year, depending on the number of screens available:

Number of Total number Screens of patrons1 50,0002 90,0003 120.0004 140.000 After paying the movie distributor and meeting all other non-interest expenses, the owner expects to net $2.00 per ticket sold. Construction costs are $1,000,000 per screen.How many screens should be built if the real interest rate is 5% a)5 b)3 c)4 d)l e)2