Pine Village city council proposes to construct new recreation fields. Construction will cost $308,687 and annual O&M expenses are $86,285. The city council estimates that the value of added youth leagues is about $125,993 annually. In year 6, another $83,140 will be needed to refurbish the fields. The city council agrees to transfer the ownership of the fields to a private company for $150,067 at the end of year 10. If the MARR for the Pine Village city is 6%, calculate the NPV of the new recreation fields project.
6% Compound Interest Factors
6% Uniform Payment Series
Arithmetic Gradient Single Payment
Present Gradient Gradient Present
Sinking Capital Compound Compound
Worth Uniform Present Amount
Worth Fund Recovery Amount
Factor Series Worth Factor
Factor Factor Factor Factor
Factor Find P Find A Find P
Find F Find P Find A Find A
Find F Given A Given A
Given G Given G Given P
Given F Given F Given P
P/A A/G P/G n n
F/P PIF A/F A/P F/A
0.943 0.0 1 1.060
0.9434 1.0000 1.0600
1.000 1.833 0.485 0.890
2 2 1.124 0.8900
4.854 0.5454 2.060 2.673
0.961 2.569 3 3
1.191 0.8396 3.141 3.741
3.184 4.375 3.465 1.427
4.945 4 1.262 7.921
2.286 0.2886 5.637 4.212
1.884 7.934 5 1.338
7.473 1.774 2.374 6.975
4.917 2.330 11.459 6 6
1.419 0.7050 1.434 0.2034
1.791 8.394 5.582 2.768
15.450 1.504 1.599 0.1191
9.897 6.210 3.195 19.841
8 1.594 0.6274 0.1010
16.100 14.700 11.491 6.802
3.613 24.577 9 9
1.689 0.0870 0.1359
7.360 4.022 29.602 10 10
1.791 55.84 0.759
13.181 14.972 4.421 34.870
-5268 12.68 11 11
1.898 0.668 16.870
8.384 4.811 40.337 12