Question

Pine Village needs some additional recreation fields. Construction will cost $300,000, and annual O&M -77 expenses are $85,000. The city council estimates that the value of added youth leagues is about $200,000 annually. In year 6 another $75,000 will be needed to refurbish the fields. The salvage value is estimated to be $50,000 after 10 years. Draw the cash flow diagram. Identify your major cash flows for the current school term as first costs, O&M expenses, salvage values, revenues, overhauls, and so on. Using a week as the time period, draw the cash flow diagram. 2-78

Answer 1