Initial cost = $2.1 million Ongoing net benefit = $750,000 per year Swimming Pool: = Initial...
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Initial cost = $2.1 million Ongoing net benefit = $750,000 per year Swimming Pool: = Initial cost $15 million Ongoing net benefit = $2 million per year Volleyball Court: Initial cost $5 million Ongoing net benefit = $1.25 million per year You also determined that the appropriate discount rate is 8% for these projects. To compare the projects, you want to use the both the EANB and the rollover method. To make your decision you completed the table below (all results are in millions, to 2 decimal places). Playground Swimming Pool Volleyball Court EANB of project GA Rollover NPV of project million $ million million million Based on the information you collated above, you suggest that the Council selects the volleyball swimming pool or volleyball) million million project. (Choose and type either; playground or Initial cost = $2.1 million Ongoing net benefit = $750,000 per year Swimming Pool: = Initial cost $15 million Ongoing net benefit = $2 million per year Volleyball Court: Initial cost $5 million Ongoing net benefit = $1.25 million per year You also determined that the appropriate discount rate is 8% for these projects. To compare the projects, you want to use the both the EANB and the rollover method. To make your decision you completed the table below (all results are in millions, to 2 decimal places). Playground Swimming Pool Volleyball Court EANB of project GA Rollover NPV of project million $ million million million Based on the information you collated above, you suggest that the Council selects the volleyball swimming pool or volleyball) million million project. (Choose and type either; playground or
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