The recreation department for St. John's is trying to decide how to develop a piece of land. They have narrowed the choices down to tennis courts or a swimming pool. The swimming pool will cost $2,250,000 to construct, and will cost $300,000 per year to operate, but will bring benefits of $450,000 per year over its 25 year expected life. Tennis courts would cost $195,000 to build, cost $20,000 per year to operate, and bring $60,000 per year in benefits over their 8 year life. Both projects are assumed to have a salvage value of zero. The appropriate MARR is 5%.

Part a - Use the BCR to select the appropriate project:

The BCR for the pool is (round your answer to 3 decimal points eg. x.xxx): ____________ [2/10]

The BCR for the tennis courts is (round your answer to 3 decimal points eg. x.xxx): ____________ [2/10]

Based on BCR, which project do you recommend (enter 'P' for pool or 'T' for tennis courts): __________ [1/10]

Partb - Use the BCRM to select the appropriate project:

The BCRM for the pool is (round your answer to 3 decimal points eg. x.xxx): ____________ [2/10]

The BCRM for the tennis courts is (round your answer to 3 decimal points eg. x.xxx): ____________ [2/10]

Based on the BCRM, which project do you recommend (enter 'P' for pool or 'T' for tennis courts): __________ [1/10]