36. Video Solution The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour of the grounds and animals, suitable for both routine enjoyment and educational purposes in classrooms.

Survey data indicate that this will have either a neutral or positive effect upon actual zoo attendance. The Web site will be professionally done and have an initial cost of $325,000. Upkeep, refreshing the videos, and developing videos for scientifi c research and entertainment will cost another $80,000 per year. The zoo is expected to be in operation for an indefi nite period; however, a study period of only 10 years for the Web site is to be assumed, with only a residual (salvage) value of $60,000 for the archival value being anticipated.

Interest is 7 percent. An estimated 100,000 persons will visit the e-zoo in the fi rst year, increasing by 30,000 each year, and they will receive, on the average, an additional $0.80 of benefi t per visit when the new area is complete.

On the basis of B/C analysis, should the Web site be supported for funding?