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
transform 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.