ACCT310 U5 IP Research Paper Example | Topics and Well Written Essays - 750 words

ACCT310 U5 IP - Research Paper Example Therefore, the ski lift will be more profitable in an after tax situation and will add more to the company’s wealth. However, there are several subjective factors that can affect the investment decision. The company can only assume additional number of ski tickets after the installation of the new lifts. Nonetheless, this value can vary to a great extent. A troubled weather for a few days will cost the lodge hundreds of visitors every day. Similarly, the new lifts are not a surety for attracting hundred of more visitors to the resort. The company must have other plans to attract the customers to the lodge, and then convince them to use the ski lifts and other accessories. Therefore, the new ski lift is, in itself, a profitable investment based on the net present values; nonetheless, there are many others subjective factors that need to be looked upon before making a final investment