ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 2, Problem 77P
To determine

Pine Village needs some additional recreation fields. Construction will cost $300,000, and annual O&M expenses are $85,000. The city council estimates that the value of added youth leagues is about $200,000 annually. In year 6 another $75,000 will be needed to refurbish the fields. The salvage value is estimated to be $50,000 after 10 years. Draw the cash flow diagram.

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