What is the euac of the proposed fund

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Reference no: EM131974299

Question: Fieldspring's city manager of public works has been reviewing flood data for his city and has determined a certain pattern to the associated costs. He wishes to start a perpetual fund for floods. The fund will make available $150,000 each year plus $450,000 every third year. Assume that he wants the first $150,000 made available now and can get an interest rate of 5.6%.

(a) What is the EUAC of this proposed fund?

(b) What amount of funding should he seek from the mayor?

Reference no: EM131974299

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