B.7. The school board asks your help in comparing alternative methods of providing schools in a newly developed suburban

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B 7 The School Board Asks Your Help In Comparing Alternative Methods Of Providing Schools In A Newly Developed Suburban 1 (42.42 KiB) Viewed 20 times

B.7. The school board asks your help in comparing alternative methods of providing schools in a newly developed suburban area. Find the equivalent annual costs of each of the following alternatives, using i = 10 percent, over a 20-year period. Build a new school cost new for school and equipment M $2,000,000 O & M costs for the first year of operation = $ 400,000/yr O&M cost gradient for subsequent years increase 8%/yr gradient salvage value at EOY 20= $ 200,000 Contract for busing pupils to nearest existing school cost the first year = $300,000/yr arithmetic gradient increase each subsequent year = $ 30,000/yr/yr (Ans, Build, A= $952,000/yr, bus, A = $495,200/yr)