Building first costs (design, planning, and construction) $10,000,000 Initial cost for roadway and parking facilities First cost to equip and furnish facility Annual operating and maintenance costs Annual savings from rented space Annual benefits to community 5,500,000 500,000 350,000 400,000 1,600,000

Building first costs (design, planning, and construction) $10,000,000 Initial cost for roadway and parking facilities First cost to equip and furnish facility Annual operating and maintenance costs Annual savings from rented space Annual benefits to community 5,500,000 500,000 350,000 400,000 1,600,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider a project that has been approved by local voters to build a new junior high school, needed because of increased (and projected) population growth. Analyze the project with interest rates of 3, 10, and 15% and with horizons of 15, 30, and 60 years.

Building first costs (design, planning, and construction) $10,000,000
Initial cost for roadway and parking facilities
First cost to equip and furnish facility
Annual operating and maintenance costs
Annual savings from rented space
Annual benefits to community
5,500,000
500,000
350,000
400,000
1,600,000

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