- Providing Restrooms At Parks Zoos And Other City Owned Recreation Facilities In A Considerable Expense For Municipal G 1 (76.05 KiB) Viewed 17 times
Providing restrooms at parks, zoos, and other city-owned recreation facilities in a considerable expense for municipal governments. City councils usually opt for permanent restroom in larger parks and portable restrooms in smaller ones. The cost of renting and servicing a portable restroom is P7,500 per year. In one municipality, the parks director informed the city council that the cost of constructing a permanent restroom is P218,000 and the annual cost of maintaining it is P12,000. He remarked that the rather high cost is due to the necessity to use expensive materials and construction techniques that are tailored to minimize damage from vandalism that often occurs in unattended public facilities. If the useful life of permanent is assumed to be 20 years, how many portable restrooms could the city afford to rent each year and break even with the cost of one permanent facility? Let the interest rate be 6% per year. (15 points.)