constructing a downtown parking lot in Draper

lot on a daily basis, at atotal annual cost of $140000. It is estimated that each car that enters the lot would park for an average of 2.5 hours and pay an avernge foe of $320. Fur ther, it is esti mated that each car that parks in the lot would CONSTRUCTING A DoWNTOWN PARKING LOT IN DRAPER The he town of Draper with a population of 20,000, sits ad-(on average) cost the town su6o in annual maintenance for jacent to State University, which has an enrollment of cleaning and repairs to the facility Most of the downtown 27,000 students. Downtown Draper merchants have long ,businesses (which include a numher of rest aurants) are complained about the lack of parking available to their cus- open 7 days per week. . tomers. This is one primary reason for the steady migation of downtown businesses to a mall several miles outsideA Using break-even analysis. detenine the number of town. The local cha mber of commerce has finally con- vinced the town council to consider the construction of a new multilevel indoor parking facility downtown. Ke lly Mattingly, the town's public works director, has developed B. From the resul'ts in tAl, determine the approximate cars that would have to park in the lot on an annual hasis to pay off the project in the 30-year time frame lans for a facility that would cost S4 .5 million to cons truct.number of cars that would have to pardk in the lot on a To pay tor the project, the town would sell municipul bonds with a duration of 30 years a 8 % interest. Kelly also esti- mates that fiwe employees would be requirad to operate the ber to achieve, given the size ot the town and collese