Assume it costs $2 a mile to travel. Person # of Visits a year Round Trip Cost per trip Distance in Miles Crystal 60 Jake 4 40 Jane 8 20 Cody 12 The park is facing an issue. A factory is being built nearby. The construction will take three years and during that time, the dust, dirt, mud, etc. will mean the lake in the park will be useless. It is anticipated that the park will not be useable. However, once complete, the factory will be clean and the park will return to use. The park is trying to decide whether to spend $3,000 on a dust and mud suppression system that will keep the lake pristine so the public (Cody, Jane, Jake, Crystal) can use the lake. You are asked the by park administrators to weigh the cost of the $3,000 versus the benefits for this year, next year, and the following year to decide whether to invest in the system. i. Fill in the total net benefit you calculated for each of the years for the total benefits found below. Year Cost Total Benefits Discounted Total Benefits Present $3,000 Next Year (1 year later) Final Year (2 years later)

Assume it costs $2 a mile to travel. Person # of Visits a year Round Trip Cost per trip Distance in Miles Crystal 60 Jake 4 40 Jane 8 20 Cody 12 The park is facing an issue. A factory is being built nearby. The construction will take three years and during that time, the dust, dirt, mud, etc. will mean the lake in the park will be useless. It is anticipated that the park will not be useable. However, once complete, the factory will be clean and the park will return to use. The park is trying to decide whether to spend $3,000 on a dust and mud suppression system that will keep the lake pristine so the public (Cody, Jane, Jake, Crystal) can use the lake. You are asked the by park administrators to weigh the cost of the $3,000 versus the benefits for this year, next year, and the following year to decide whether to invest in the system. i. Fill in the total net benefit you calculated for each of the years for the total benefits found below. Year Cost Total Benefits Discounted Total Benefits Present $3,000 Next Year (1 year later) Final Year (2 years later)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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