Initial capital equipment

Assignment Help Financial Management

Reference no: EM13811322

A city has decided to build a softball complex and the city council has already voted to fund the project at the level of $800,000 (initial capital equipment). The city engineer has collected the following financial information for the complex project

Annual upkeep costs: $120,000

Annual utility costs: $13,000

Renovation costs: $50,000 for every five years

Annual team user fees (revenues): $32,000

Useful life: Infinite

Interest rate: 8% compounded annually

If the city can expect 35,000 visitors to the complex each year, what should be the minimum ticket price per person so that the city can break even?

Reference no: EM13811322

Questions Cloud

Manufacturing firm-how many decision alternatives are there : A small manufacturing firm is considering the purchase of a new machine. Two types of machines are available on the market. The lives of Machine A and Machine B are four years and six years respectively, but the firm does not expect to need the servi..

Analysis of interview with someone from cultural group : This assignment involves a written analysis of an interview with someone from a cultural group different from your own about their experience working for an organization. The purpose is to increase your understanding and awareness of differences i..

What is referential integrity : Pathivadr's (2009) article addresses a fundamentally critical function in the relational model DB-referential integrity. What is referential integrity

How would you define a relational database : How would you define a relational database? What is "normalization" and why do we normalize DBs

Initial capital equipment : A city has decided to build a softball complex and the city council has already voted to fund the project at the level of $800,000 (initial capital equipment). The city engineer has collected the following financial information for the complex projec..

The role of the torah and special covenant : The Role of the Torah and Special Covenant

Manufacture several lines of pressure washers : An industrial firm can manufacture several lines of pressure washers. The demand for a particular component required for a pressure washer is 120,000 per year. The firm has the following two options: Buy option: A supplier is willing to provide this ..

Determine the equivalent annual savings : The owner of a business is considering investing $55,000 in new equipment. She estimates that the net cash flow will be $5,000 during the first year and will increase by $2,500 per year each year thereafter. Determine the annual capital recovery cost..

Managing people and organizations : You will prepare and submit a research paper on an approved topic related to Managing People and Organizations. The length of the paper should be somewhere between 12 and 15 pages and include at least 10 academic resources. (Usually, an academic r..

User Account

All Pages