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The expansion of the Wide-place Mall is delayed over the issue of parking. There is not enough now to support the new facility and more
The expansion of the Wide-place Mall is delayed over the issue of parking. There is not enough now to support the new facility and more must be added. Let's suppose that there are 3 options: buying more land, filling wetlands at the rear of the site, or building a multilevel garage on the present lot. Assume a forty-year planning horizon and an interest rate of 9% per year. Use Annual worth analysis and the data below to determine which option should be selected. Purchase LandFill Wetlands Garage Initial Cost, $ $12,000,000 $19,000,000 $44,000,000 Annual Benefit, $ per year 4,000,000 (parking fees) 200,000 160,000 Annual Cost, $ per year 2,900,000
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