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nvestment, and this will repeat every 20 years thereafter. d plan (Prairie View) has an initial investment of $650,000 followed by a single (one-time) investment of $310,000 thirty years later. Prairie View will incur annual expenses of $9,000 forever. the present worth method, which plan would you recommend? Note that the present worth of an alternative when N = infinity is known as "Capitalized Worth (CW)". the icon to view the interest and annuity table for discrete compounding when i= 9% per year. f the Skyline is $ thousand. (Round to the nearest whole number.)

nvestment, and this will repeat every 20 years thereafter. d plan (Prairie View) has an initial investment of $650,000 followed by a single (one-time) investment of $310,000 thirty years later. Prairie View will incur annual expenses of $9,000 forever. the present worth method, which plan would you recommend? Note that the present worth of an alternative when N = infinity is known as "Capitalized Worth (CW)". the icon to view the interest and annuity table for discrete compounding when i= 9% per year. f the Skyline is $ thousand. (Round to the nearest whole number.)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The National Park Service is considering two plans for rejuvenating the forest and landscape of a large tract of public land. The study period is indefinitely long, and the Park Service's MARR is 9% per year. You have been asked to compare the two plans using the present worth method. The first plan (Skyline) calls for an initial investment of $500,000, with expenses of $25,000 per year for the first 20 years and $35,000 per year thereafter. Skyline also requires an expenditure of $200,000 twenty years after the initial investment, and this will repeat every 20 years thereafter. The second plan (Prairie View) has an initial investment of $650,000 followed by a single (one-time) investment of $310,000 thirty years later. Prairie View will incur annual expenses of $9,000 forever. Based on the present worth method, which plan would you recommend? Note that the present worth of an alternative when N = infinity is known as "Capitalized Worth (CVW)". %3D Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. ..... The CW of the Skyline is $ thousand. (Round to the nearest whole number.) The CW of the Prairie View is $ thousand. (Round to the nearest whole number.) Which plan would you recommend? Choose the correct answer below. Skyline Prairie View
Transcribed Image Text:The National Park Service is considering two plans for rejuvenating the forest and landscape of a large tract of public land. The study period is indefinitely long, and the Park Service's MARR is 9% per year. You have been asked to compare the two plans using the present worth method. The first plan (Skyline) calls for an initial investment of $500,000, with expenses of $25,000 per year for the first 20 years and $35,000 per year thereafter. Skyline also requires an expenditure of $200,000 twenty years after the initial investment, and this will repeat every 20 years thereafter. The second plan (Prairie View) has an initial investment of $650,000 followed by a single (one-time) investment of $310,000 thirty years later. Prairie View will incur annual expenses of $9,000 forever. Based on the present worth method, which plan would you recommend? Note that the present worth of an alternative when N = infinity is known as "Capitalized Worth (CVW)". %3D Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. ..... The CW of the Skyline is $ thousand. (Round to the nearest whole number.) The CW of the Prairie View is $ thousand. (Round to the nearest whole number.) Which plan would you recommend? Choose the correct answer below. Skyline Prairie View
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