The National Park Service is considering two plans for rejuvenating the forest and landscape of a large tract of public land. The study period is indefinitely long, and the Park Service's MARR is 10% per year. You have been asked to compare the two plans using the present worth method. The first plan (Skyline) calls for an initial investment of $550 ,000,

with expenses of $25,000 per year for the first 20 years and $35,000 per year thereafter. Skyline also requires an expenditure of $200,000 twenty years after the initial investment, and this will repeat every 20 years thereafter. The second plan(Prairie View)has an initial investment of $650,000 followed by a single (one-time) investment of $290,000 thirty years later. Prairie View will incur annual expenses of$11 ,000

forever. Based on the present worth, which plan would you recommend? Note that the present worth of an alternative when N = infinity is known as "Capitalized Worth (CW)".

WHAT IS CW FOR SKYLINE

WHAT IS CW FOR PARIE VIEW

WHAT PLAN IS RECOMENEDED

Capital Recovery Discrete Compounding; i = 10% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA PIA A/F 1. 1000 0.9091 1.0000 0.9091 1.0000 1.2100 0.8264 2.1000 1.7355 0.4762 1.3310 0.7513 3.3100 2.4869 0.3021 1.4641 0.6830 4.6410 3.1699 0.2155 1.6105 0.6209 6.1051 3.7908 0.1638 1.7716 0.5645 7.7156 4.3553 0.1296 1.9487 0.5132 9.4872 4.8684 0.1054 2. 1436 0.4665 11.4359 5.3349 0.0874 2.3579 0.4241 13.5795 5.7590 0.0736 2.5937 0.3855 15.9374 6.1446 0.0627 2.8531 0.3505 18.5312 6.4951 0.0540 3.1384 0.3186 21.3843 6.8137 0.0468 3.4523 0.2897 24.5227 7.1034 0.0408 3.7975 0.2633 27.9750 7.3667 0.0357 4.1772 0.2394 31.7725 7.6061 0.0315 4.5950 0.2176 35.9497 7.8237 0.0278 5.0545 0.1978 40.5447 8.0216 0.0247 5.5599 0.1799 45.5992 8.2014 0.0219 6.1159 0.1635 51.1591 8.3649 0.0195 6.7275 0.1486 57.2750 8.5136 0.0175 7.4002 0.1351 64.0025 8.6487 0.0156 8.1403 0.1228 71.4027 8.7715 0.0140 8.9543 0.1117 79.5430 8.8832 0.0126 9.8497 0.1015 88.4973 8.9847 0.0113 10.8347 0.0923 98.3471 9.0770 0.0102 17.4494 0.0573 164.4940 9.4269 0.0061 28.1024 0.0356 271.0244 9.6442 0.0037 45.2593 0.0221 442.59269.7791 0.0023 72.8905 0.0137 718.9048 9.8628 0.0014 117.3909 0.0085 1163.9085 9.9148 0.0009 To Find A Given P A/P 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 0.1540 0.1468 0.1408 0.1357 0.1315 0.1278 0.1247 0.1219 0.1195 0.1175 0.1156 0.1140 0.1126 0.1113 0.1102 0.1061 0.1037 0.1023 0.1014 0.1009