The City of Brisket is considering a new project. City planners
are trying to figure out the present worth of building a park. The
city will purchase the land for $666921. Maintenance and utilities
will initially cost $86752, and they are estimated to increase by
12% each year. The city will made periodic upgrades to the park.
They estimate they will spend $56154 at the end of year 5 for a
bird watching kiosk. They will spend $166695 at the end of year 7
for a gazebo and a formal garden. At the end of year 17, they plan
to install a water feature at a cost of $385393.
With the installation of the formal garden, the city believes it
can begin generating revenue from that area of the park by issuing
permits for large groups or special occasions. The city is
estimating that by the end of year 10, the permit revenue will be
$63530, increasing by $33937 each subsequent year.
Calculate the present worth of the park project using a 28-year
life span and an interest rate of 5%, compounded annually.
The first year of revenue is at the end of year 10
Be sure to count the years carefully when calculating the years
for the permit revenue
Enter your answer in this form: 12345
Round your answer. Do not use a dollar sign (“$”), any commas
(“$”), or a decimal point (“.”).