Question 1 A local municipality is considering investing $250,000 to upgrade a park. Based on similar investments made by similar cities, it is anticipated the investment will result in annual costs

and annual benefits over a 15-year period as shown in the cash flow profile given below in thousands of dollars. Notice, an intermediate investment of $150,000 is anticipated in the 6th year of the investment. Based on a MARR of 5%, use benefit-cost ratio analysis to determine whether the investment should be made.