Question
Please only complete Present worth of cost table The city of St. John's is intalling a new swimming pool in the east end recreation centre.
Please only complete Present worth of cost table
The city of St. John's is intalling a new swimming pool in the east end recreation centre. One design being considered is a reinforced concrete pool that will cost $5,200,000 to install. Thereafter, the inner surface of the pool will need to be refinished and painted every 5 years at a cost of $320,000 per refinishing. Assuming that the pool will have essentially an infinite life, what is the present worth of the costs associated with the pool design? The city uses a MARR of 6%. If the installation costs, refinishing costs, and MARR are subject to 5% or 10% increases or decreases, how is the present worth affected? (NOTE: Text answers are case sensitive and every field in this question is worth equal value)
All calculations are performed using 4 significant figures.
(a) Complete the table below:
Parameter | -10% | -5% | Base Case | +5% | +10% |
Construction Costs |
| 5,200,000 | |||
Refinishing Costs | 320,000 | ||||
MARR [%] | 6 | ||||
|
|
|
|
|
|
Present worth of Costs | -10% | -5% | 0% | +5% | +10% |
Changes to Construction Costs | 6.146E6 | ||||
Changes to Refinishing Costs | 6.146E6 | ||||
Changes to MARR | 6.146E6 |
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