The Builder of a New Movie Theatre Complex Is Trying

question 126

Multiple Choice

The builder of a new movie theatre 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:
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) 1.
• B) 2.
• C) 3.
• D) 4.
• E) 5.

---

Definitions:

Real-World Uses

Practical applications or implications of a theory, concept, or product in everyday life and activities.

Saccades

Rapid, jerky movements of the eyes as they jump from one fixation point to another.

Iconic Sensory Memory

A form of sensory memory that briefly holds visual information, allowing it to be processed further.

Rapidly Passing Scenery

The visual perception of landscape or surroundings moving quickly past a viewer, often experienced during travel.