(Answered) Fieldsprings city manager of public works has been

Management Studies

Fieldspring's city manager of public works has been reviewing flood data for his city and has determined a certain pattern to the associated costs. He wishes to start a perpetual fund for floods. The fund will make available $250,000 each year plus $750,000 every fourth year. Assume that he wants the first $250,000 made available now and can get an interest rate of 5.6%.

(a) What is the EUAC of this proposed fund?

Answer:

Reasoning/Work:

(b) What amount of funding should he seek from the mayor?

Answer:

Reasoning/Work:

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