The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour of the grounds and animals,suitable for both routine enjoyment and educational purposes in classrooms. Survey data indicate that this will have either a neutralor positive effect upon actual zoo attendance. The Web site will be professionally done and have an initial cost of 5325,000. Upkeep,refreshing the videos, and developing videos for scientific research and entertainment will cost another 580,000 per year. The zoo isexpected to be in operation for an indefinite period; however, a study period of only 10 years for the Web site is to be assumed, withonly a residual (salvage) value of 560,000 for the archival value being anticipated. Interest is 7%. An estimated 100,000 persons willvisit the e-zoo in the first year, increasing by 30,000 each year, and they will receive, on the average, an additional 50.80 of benefit pervisit when the new area is complete. On the basis of benefit-cost analysis, should the Web site be supported for funding?A) YesB) No

Benefit-Cost Ratio=Present Worth of BenefitsPresent Worth of Costs

The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour of the grounds and animals, suitable for both routine enjoyment and educational purposes in classrooms. Survey data indicate that this will have either a neutral or positive effect upon actual zo0 attendance. The Web site will be professionally done and have an initial cost of 5325,000. Upkeep, refreshing the videos, and developing videos for scientific research and entertainment will cost another $80,000 per year. The zoo is expected to be in operation for an indefinite period; however, a study period of only 10 years for the Web site is to be assumed, with only a residual (salvage) value of 560,000 for the archival value being anticipated. Interest is 7%. An estimated 100,000 persons will visit the e-zoo in the first year, increasing by 30,000 each year, and they will receive, on the average, an additional S0.80 of benefit per visit when the new area is complete. On the basis of benefit-cost analysis, should the Web site be supported for funding? A) Yes B) No

The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour of the grounds and animals, suitable for both routine enjoyment and educational purposes in classrooms. Survey data indicate that this will have either a neutral or positive effect upon actual zo0 attendance. The Web site will be professionally done and have an initial cost of 5325,000. Upkeep, refreshing the videos, and developing videos for scientific research and entertainment will cost another $80,000 per year. The zoo is expected to be in operation for an indefinite period; however, a study period of only 10 years for the Web site is to be assumed, with only a residual (salvage) value of 560,000 for the archival value being anticipated. Interest is 7%. An estimated 100,000 persons will visit the e-zoo in the first year, increasing by 30,000 each year, and they will receive, on the average, an additional S0.80 of benefit per visit when the new area is complete. On the basis of benefit-cost analysis, should the Web site be supported for funding? A) Yes B) No

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter26: Capital Budgeting (capbud)

Section: Chapter Questions

Problem 5R

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The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour of the grounds and animals, suitable for both routine enjoyment and educational purposes in classrooms. Survey data indicate that this will have either a neutral or positive effect upon actual zoo attendance. The Web site will be professionally done and have an initial cost of $345,000. Upkeep, refreshing the videos, and developing videos for scientific research and entertainment will cost another $81,000 per year. The zoo is expected to be in operation for an indefinite period; however, a study period of only 10 years for the Web site is to be assumed, with only a residual (salvage) value of $65,000 for the archival value being anticipated. Interest is 6%. An estimated 120,000 persons will visit the e-zoo in the first year, increasing by 29,500 each year, and they will receive, on the average, an additional $0.70 of benefit per visit when the new area is complete. Calculate…
The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour of the grounds and animals, suitable for both routine enjoyment and educational purposes in classrooms. Survey data indicate that this will have either a neutral or positive effect upon actual zoo attendance. The Web site will be professionally done and have an initial cost of $325,000. Upkeep, refreshing the videos, and developing videos for scientific research and entertainment will cost another $80,000 per year. The zoo is expected to be in operation for an indefinite period; however, a study period of only 10 years for the Web site is to be assumed, with only a residual (salvage) value of $60,000 for the archival value being anticipated. Interest is 7%. An estimated 100,000 persons will visit the e-zoo in the first year, increasing by 30,000 each year, and they will receive, on the average, an additional $0.80 of benefit per visit when the new area is complete. Determine the…
Please answer the as quickly as possible. The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour of the grounds and animals, suitable for both routine enjoyment and educational purposes in classrooms. Survey data indicate that this will have either a neutral or positive effect upon actual zoo attendance. The Web site will be professionally done and have an initial cost of $300,000. Upkeep, refreshing the videos, and developing videos for scientific research and entertainment will cost another $75,000 per year. The zoo is expected to be in operation for an indefinite period; however, a study period of only 10 years for the Web site is to be assumed, with only a residual (salvage) value of $55,000 for the archival value being anticipated. Interest is 5%. An estimated 80,000 persons will visit the e-zoo in the first year, increasing by 27,500 each year, and they will receive, on the average, an additional $0.70 of benefit per visit when the…
Please answer question correctly as quickly as possible. The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour of the grounds and animals, suitable for both routine enjoyment and educational purposes in classrooms. Survey data indicate that this will have either a neutral or positive effect upon actual zoo attendance. The Web site will be professionally done and have an initial cost of $300,000. Upkeep, refreshing the videos, and developing videos for scientific research and entertainment will cost another $75,000 per year. The zoo is expected to be in operation for an indefinite period; however, a study period of only 10 years for the Web site is to be assumed, with only a residual (salvage) value of $55,000 for the archival value being anticipated. Interest is 5%. An estimated 80,000 persons will visit the e-zoo in the first year, increasing by 27,500 each year, and they will receive, on the average, an additional $0.70 of benefit per…
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