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The city of Brussels is installing a new swimming pool in the downtown recreation centre. One design being considered is a reinforced concrete pool that will cost €6 000 000 to install. Thereafter, the inner surface of the pool will need to be refmished and painted every 10 years at a cost of €4 0 000 per refinishing.
Assuming that the pool will have essentially an infinite life, what is the present worth of the costs associated with the pool design? The city uses a MARR of 5%. If the installation costs, refinishing costs, and MARR are subject to 5% or 10% increases or decreases, how is the present worth affected? To which parameter is the present worth most sensitive?
Learning contract proposal that will form the basis of your learning contract report.
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