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The Parks and Recreation Department has suggested renovating the municipal golf course at a cost of $1.1 million with an annual operating cost of $255,000

The Parks and Recreation Department has suggested renovating the municipal golf course at a cost of $1.1 million with an annual operating cost of $255,000 and an annual savings of $295,000. The expected life of the golf course is seven years before the city will have to make a major investment in improving the course. Calculate the payback period, remaining asset life, and the actual savings. Explain the results

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