Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 2

The city of El Paso gave the El Paso Tennis and Swim Club a 20-year lease to continue using a 10-acre arroyo park for its facilities. The club will pay $1000 per year plus make $350,000 in improvements at the park. In addition, the club will open its tennis courts to the public from 1 to 5 P.M. Monday through Thursday. If the club makes $100,000 worth of improvements now and then $50,000 worth each year for the next 5 years, what is the equivalent annual cost of the lease to the club at an interest rate of 10% per year