Question: Pine Village needs some additional recreation elds. Construction will cost $225,000, and annual O&M expenses are $85,000.The city council estimates that the value of added

Pine Village needs some additional recreation elds. Construction will cost $225,000, and annual O&M expenses are $85,000.The city council estimates that the value of added youth leagues is about $190,000 annually. In year 6 another $75,000 will be needed to refurbish the elds.The salvage value is estimated to be $100,000 after 10 years. Draw the cash ow diagram.

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