A city has decided to build a sofiball complex, and the city council has already voted to fund the project at the level of $800,000 (initial capital investment ). The city engineer has collected the following financial information for the complex project:• Annual upkeep costs: $120.000• Annual utility costs: $13,000• Renovation costs: $50,000 for every five years• Annual team user fees (revenues): $32,000• Useful life: Infinite• l interest rate: 8%lf the city can expect 40.000 visitors to the complex each year, what should be the minimum ticket price per person so that 1he city can break even'?
A city has decided to build a sofiball complex, and the city council has already voted to fund the project at the level of $800,000 (initial capital investment ). The city engineer has collected the following financial information for the complex project:• Annual upkeep costs: $120.000• Annual utility costs: $13,000• Renovation costs: $50,000 for every five years• Annual team user fees (revenues): $32,000• Useful life: Infinite• l interest rate: 8%lf the city can expect 40.000 visitors to the complex each year, what should be the minimum ticket price per person so that 1he city can break even'?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A city has decided to build a sofiball complex, and the city council has already voted to fund the project at the level of $800,000 (initial capital investment ). The city engineer has collected the following financial information for the complex project:
• Annual upkeep costs: $120.000
• Annual utility costs: $13,000
• Renovation costs: $50,000 for every five years
• Annual team user fees (revenues): $32,000
• Useful life: Infinite
• l interest rate: 8%
lf the city can expect 40.000 visitors to the complex each year, what should be the minimum ticket price per person so that 1he city can break even'?
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