Town of Babylon needs some additional recreation fields. Construction will cost $200,000, and annual Q & M expenses are $57,000. The city council estimates that the value of added youth leagues is about $125,000 annually. In year 6 another $35,000 will be needed to refurbish the fields. The salvage value is estimated to be $45,000 after 10 years. Draw the cash flow diagram
Town of Babylon needs some additional recreation fields. Construction will cost $200,000, and annual Q & M expenses are $57,000. The city council estimates that the value of added youth leagues is about $125,000 annually. In year 6 another $35,000 will be needed to refurbish the fields. The salvage value is estimated to be $45,000 after 10 years. Draw the cash flow diagram
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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