The City of Bowling Green wants to build a public recreational park that would have an...

 

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The City of Bowling Green wants to build a public recreational park that would have an initial cost of $200,000. They anticipate additional one-time costs of 30,000, and 15,000 after 2 years and 5 years respectively. The annual maintenance cost will be $4,000 for the first ten years and $6,000 thereafter. Given that the interest rate is 8%, how much money does the city need to raise today to build and maintain the park forever? The City of Bowling Green wants to build a public recreational park that would have an initial cost of $200,000. They anticipate additional one-time costs of 30,000, and 15,000 after 2 years and 5 years respectively. The annual maintenance cost will be $4,000 for the first ten years and $6,000 thereafter. Given that the interest rate is 8%, how much money does the city need to raise today to build and maintain the park forever?

Answer rating: 100% (QA)

To calculate the amount of money the city needs to raise today to build and maintain the park forever we need to determine the present value of all th... View the full answer