Overview
Orlando Public Works Project
- Orlando has outgrown it's Citrus Bowl stadium and has not been invited to host the best of College Football Championship games because of it
- If a public works project (a very long term commitment) was planned in Orlando to construct a new, permanent football stadium, and it's initial cost was $900M
Orlando Public Works Project
- The new stadium yearly maintenance cost was $1M/year for years 1-10, growing to $2M/year thereafter
- The new stadium required repainting every 10 years at a cost of $2.5M
- The new stadium required a new grass surface every 5 years at a cost of $3M, and
- The new stadium had a one time Bond payment cost of $15M in year 30
Orlando Public Works Project
- What is the Present Worth cost of this permanent project if city money is available to be borrowed at 6%/yr CA?
- What is the Annual amount/year Orlando will be committed to?
(Please no Excil using, show clear handwriting, and drawing diagram cash flow with steps.) If you are gonna use doc file or pdf, please use equation editor.
I attached a sample file with everything provided for the question.