Jefferson City has decided to build a downtown parking garage to house the city$$s employee vehicles. Since the city has to demolish several build$-$ ings on the site, the project will take five years to complete. The city expects to save $$35,000$ a year in parking vouchers once the project is com$-$ pleted. Using a $5$ percent discount rate, determine the present value $($PV$)$ of the $$35,000$ savings at the end of the five$-$year period $($see appendix $6$A$).$Present Value

Short Answer

$PV=F\frac{V}{IR+1}5$

$PV=$

to the fifth power$)$

Long Answer

$PV=$