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Pine Village city council proposes to construct new recreation fields. Construction will cost $322.889 and annual O&M expenses are $81,554. The city council estimates that

Pine Village city council proposes to construct new recreation fields. Construction will cost $322.889 and annual O&M expenses are $81,554. The city council estimates that the value of added youth leagues is about $129,412 annually. In year 6 another $89,755 will be needed to refurbish the fields. The city council agrees to transform the ownership of the fields to a private company for $168,119 at the end of year 10.

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Question 1

If the MARR for the Pine Village city is 6%, calculate the NPV of the new recreation fields project.

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