Q:Scary plc runs a large theme park in the north of England. The company is considering two different types of theme park attraction as possibilities for a future major investment. Both attractions involve an investment of approximately $1.5m. Which of the following pieces of information will be least significant for the decision ?
A. Interest rate expe
ctations for future borrowing.
B. Demographic profile of the local population.
C. Prior years' customer data by type of attraction.
D. Competitor information on future new rides under construction.
A:The correct answer is: Interest rate expectations for future borrowing.
As investment levels are similar for both types of attraction, the cost of borrowing and repayments will be similar for both and therefore not very useful when making the investment decision.