Benefit will make the library renovation desirable

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Reference no: EM131189800

The Logan Public Library in IA serves long-term residents. Renovation costs for the same are $71,500. Maintenance is expected to be $7500 per year. The interest rate is 8% and planning horizon is 10 years. It is estimated that an additional 2500 visits to the library will occur in first year after renovation increasing by 500 per year after that. Average benefits per person per visit will be $2.00. a) Use PW and calculate B - C. Should the library be renovated. b) What per person per year benefit will make the library renovation desirable.

Reference no: EM131189800

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