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 benefit-cost ratio and benefits minus costs.

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
icon
Related questions
Question
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 benefit-cost ratio and benefits minus costs.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning

Expert Answers to Latest Homework Questions

Q: Part I. Shorter problems focused on the fundamentals a. For the image at the right the coordinate…
Q: Can you show me how to set grid template rows to auto min-height 5em? Set grid temple columns to…
Q: Use Richardson Extrapolation to solve the finite element method in engineering; refer to the…
Q: lent Lesson x + 3198/variants/5939837/take/6/ Find the surface area of the regular hexagonal…
Q: h. If a 36° What is the unit vector of from A to B? Z A 3 a C X B i. What is the unit vector from A…
Q: c. For the image at the right = 35° and e- 16° What is the unit vector? e F d. What is the Force…
Q: Using the CAM model, consider how to respond to an employer.  Scenario: You received a job offer at…
Q: e. A force acts along a line connecting point 1 ( -14,58,71 ) ft. and point 243,-13,34 ) ft. What is…
Q: Part I. Shorter problems focused on the fundamentals a. For the image at the right, the coordinate…
Q: What is E°(cell) for the cell Mn | Mn²⁺(aq) || Ag⁺(aq) | Ag?   Standard Reduction Potential: Au³⁺(aq…
Q: What is E°(cell) for the reaction 2 Au(s) + 3 Ca²⁺(aq) → 2 Au³⁺(aq) + 3 Ca(s)?   Standard Reduction…
Q: What is the reason for fat to be the most effective energy storage molecule in terms of oxidation…
Q: What are the three possible fates for Pyruvate? What the end products of two of the fates (clearly…
Q: Why is it necessary for low energy molecules to get converted to a higher energy molecule prior to…
Q: Under anerobic conditions how many ATP molecules will be produced when 3.5 moles of Glucose are…
Q: Using the Framework for Ethical Decision Making, describe coming to a decision on whether to do this…
Q: Calculate the free E of the following reaction using the information provided inside the box.…
Q: Mario's Record Shop, a retail store, has an average gross profit ratio of 30 percent. The sales…
Q: Please fill in these charts
Q: Can you show me how to add media queries to create a layout using Sublime Text Editor?  Also, add a…
Q: Please fill in these charts