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 $5,400,000 to install. Thereafter, the inner surface of the pool will need to be refinished and painted every 5 years at a cost of $340,000 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: Sensitivity Analysis Calculated Values Parameter -10% -5% Base Case +5% +10% Construction Costs [1/25] (1/25] 5,400,000 (1/25] [1/25] Refinishing Costs (1/25) (1/25) 340,000 (1/25] [1/25] MARR [%] (1/25) [1/25] 6 [1/25] (1/25) Present worth of Costs -10% -5% 0% +5% +10% Changes to Construction Costs [1/25] (1/25) 6.40556 [1/25] (1/25] Changes to Refinishing Costs [1/25] [1/25] 6.405E6 (1/25] (1/25] Changes to MARR (1/25] (1/25] | 6.40556 (1/25] [1/25] 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 $5,400,000 to install. Thereafter, the inner surface of the pool will need to be refinished and painted every 5 years at a cost of $340,000 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: Sensitivity Analysis Calculated Values Parameter -10% -5% Base Case +5% +10% Construction Costs [1/25] (1/25] 5,400,000 (1/25] [1/25] Refinishing Costs (1/25) (1/25) 340,000 (1/25] [1/25] MARR [%] (1/25) [1/25] 6 [1/25] (1/25) Present worth of Costs -10% -5% 0% +5% +10% Changes to Construction Costs [1/25] (1/25) 6.40556 [1/25] (1/25] Changes to Refinishing Costs [1/25] [1/25] 6.405E6 (1/25] (1/25] Changes to MARR (1/25] (1/25] | 6.40556 (1/25] [1/25]
