In: Finance
An existing public park serving 1.8 Million visitor/year is to be improved. Initial cost is SR 2.25 Million and the annual operating and maintenance cost starts with SR 0.145 Million during the first year and increases 3%/year thereafter. The planning horizon is 20 years, the salvage value is 32% of the initial cost, and the interest rate is 15%. The minimum additional benefits/visit that will justify the facility improvement is closest to:
a) SR 0.19
b) SR 0.25
c) SR 0.16
d) SR 0.29