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0 A local municipality is considering investing $210,000 to upgrade a park. Based on similar investments made by similar cities, it is anticipated the investment

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0 A local municipality is considering investing $210,000 to upgrade a park. Based on similar investments made by similar cities, it is anticipated the investment will result in annual costs and annual benefits over a 15-year period as shown in the cash flow profile given below in thousands of dollars. Notice, an intermediate investment of $140,000 is anticipated in the 6th year of the investment. Based on a MARR of 7%, use benefit-cost ratio analysis to determine whether the investment should be made. (All values in thousand dollars) End-of Costs Year Benefits Net Cash Flow $210 -$210 1 $70 $120 $50 2 $70 $130 $60 3 $70 $140 $70 $70 $150 $80 5 $70 $160 $90 6 $210 $170 7 $70 $160 $90 $70 $150 $80 $70 $140 $70 10 $70 $130 $60 11 $70 $120 $50 12 $70 $110 $40 13 $70 $100 $30 14 $70 $90 $20 15 $70 $80 $10 4 -$40 8 9 Click here to access the TVM Factor Table calculator B/C - 0 A local municipality is considering investing $210,000 to upgrade a park. Based on similar investments made by similar cities, it is anticipated the investment will result in annual costs and annual benefits over a 15-year period as shown in the cash flow profile given below in thousands of dollars. Notice, an intermediate investment of $140,000 is anticipated in the 6th year of the investment. Based on a MARR of 7%, use benefit-cost ratio analysis to determine whether the investment should be made. (All values in thousand dollars) End-of Costs Year Benefits Net Cash Flow $210 -$210 1 $70 $120 $50 2 $70 $130 $60 3 $70 $140 $70 $70 $150 $80 5 $70 $160 $90 6 $210 $170 7 $70 $160 $90 $70 $150 $80 $70 $140 $70 10 $70 $130 $60 11 $70 $120 $50 12 $70 $110 $40 13 $70 $100 $30 14 $70 $90 $20 15 $70 $80 $10 4 -$40 8 9 Click here to access the TVM Factor Table calculator B/C

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