Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Oklahoma City Zoo has proposed adding to their web site a major segment providing a virtual tour of the grounds and animals, suitable for

image text in transcribed
The Oklahoma City Zoo has proposed adding to their web site a major segment providing a virtual tour of the grounds and animals, suitable for both routine enjoyment and educational purposes in classrooms. Survey data indicate that this will have either a neutral or positive effect upon actual zoo attendance. The Web site will be professionally done and have an initial cost of $330,000. Upkeep, refreshing the videos, and developing videos for scientific research and entertainment will cost another $75,000 per year. The zoo is expected to be in operation for an indefinite period: however, a study period of only 10 years for the Web site is to be assumed, with only a residual (salvage) value of $62,000 for the archival value being anticipated. Interest is 10%. An estimated 80.000 persons will visit the e-zoo in the first year, increasing by 32.500 each year, and they will receive, on the average, an additional $0.85 of benefit per visit when the new area is complete. Parta Calculate benefit-cost ratio and benefits minus costs BIC Round answer to 3 decimal proces. The tolerance list 0.1 B-C Round answer to nearest whole dollar. The tolerances 10

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

Concise 6th Edition

324664559, 978-0324664553

More Books

Students also viewed these Finance questions