(7) The Parks and Recreation department has suggested renovating the mu- nicipal golf course at a cost of $1.1 million with an annual operating cost of $255,000 and an annual savings of $295,000. The expected life of the golf course is seven years before the city will have to make a major in- vestment in improving the course. Calculate the payback period, remain- ing asset life, and the actual savings. Explain the results. Renovations: $1,100,000 Annual operating cost: $255,000 Annual savings: $295,000 Lifespan: 7 years $1,100,000 $255,000 $295,000 7 NSAV 1 #DIV/0! #DIV/0! o Payback period 1 2 Remaining life 3 4 Actual Savings 15 16 Conclusion: 17 #DIV/0! 18