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The largest expense for Japanese swimming competition team a the rental fee of training facility. Each swim season, the team would need at least (4
The largest expense for Japanese swimming competition team a the rental fee of training facility. Each swim season, the team would need at least (4 training sessions per week and over 15 weeks), To rent an outside of the facility The Japanese need to pay $800 per session. The cost of building an Olympic swimming pool $100,000, plus annual maintenance fee of $30,000. The Japaneses can also open the pool to other users during off-season and charge them $400 per session. It is expected to have 30 sessions sold each year. Assume the swimming pool can be used for 5 year end the is a $10,000 salvage value. a) Draw cash flow diagram for the option of building an olympic swimming pool b) calculate the the present worth of the build option with MARR 15% c) calculate the annual equivalent cost of the build option with MARR 15% d) calculate the cost per training session of the build option and make a decision of building the swimming pool or not The largest expense for Japanese swimming competition team a the rental fee of training facility. Each swim season, the team would need at least (4 training sessions per week and over 15 weeks), To rent an outside of the facility The Japanese need to pay $800 per session. The cost of building an Olympic swimming pool $100,000, plus annual maintenance fee of $30,000. The Japaneses can also open the pool to other users during off-season and charge them $400 per session. It is expected to have 30 sessions sold each year. Assume the swimming pool can be used for 5 year end the is a $10,000 salvage value. a) Draw cash flow diagram for the option of building an olympic swimming pool b) calculate the the present worth of the build option with MARR 15% c) calculate the annual equivalent cost of the build option with MARR 15% d) calculate the cost per training session of the build option and make a decision of building the swimming pool or not
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