Initial capital equipment-break even

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Reference no: EM13815757

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: EM13815757

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