Reference no: EM132557123

Question 1: The City in which you live is evaluating a project to build and manage a public pool in a neighborhood where many children live. The cost to acquire the land and build the pool is $25,000. The following operational expenses and revenues are estimated. In what year does the pool reach its payback period?

            Expenses       Revenue             Profit

Year 1:  $10,000          $5,000         -$5,000

Year 2: $10,000            $9,000         -$1,000

Year 3: $10,000          $12,000           $2,000

Year 4: $10,000            $15,000              $5,000

Year 5: $10,000            $19,000              $9,000