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You determine a proposed new state park will cost approximately $2.5 million to develop. Once opened one year later, you estimate it will attract 12,000
You determine a proposed new state park will cost approximately $2.5 million to develop. Once opened one year later, you estimate it will attract 12,000 visitors annually over the next 20 years which is the useful life of the park investment. Because state law requires a minimum of 5% return on any investment of state funds, what minimum park entrance fee needs to be charged in order for the investment to meet the minimum rate of return required by state law?
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