Providing restrooms at parks, zoos, and other cityowned
recreation facilities is a considerable expense
for municipal governments. City councils
usually opt for permanent restrooms in larger
parks and portable restrooms in smaller ones. The
cost of renting and servicing a portable restroom
is $7500 per year. In one northeastern municipality,
the parks director informed the city council
that the cost of constructing a permanent restroom
is $218,000 and the annual cost of maintaining it
is $12,000. He remarked that the rather high cost
is due to the necessity to use expensive materials
and construction techniques that are tailored to
minimize damage from vandalism that often occurs
in unattended public facilities. If the useful
life of a permanent restroom is assumed to be 20
years, how many portable restrooms could the
city afford to rent each year and break even with
the cost of one permanent facility? Let the interest
rate be 6% per year.
Providing restrooms at parks, zoos, and other cityownedrecreation facilities is a considerable expensefor municipal governments. City councilsusually opt for permanent restrooms in largerparks and portable restrooms in smaller ones. Thecost of renting and servicing a portable restroomis $7500 per year. In one northeastern municipality,the parks director informed the city councilthat the cost of constructing a permanent restroomis $218,000 and the annual cost of maintaining itis $12,000. He remarked that the rather high costis due to the necessity to use expensive materialsand construction techniques that are tailored tominimize damage from vandalism that often occursin unattended public facilities. If the usefullife of a permanent restroom is assumed to be 20years, how many portable restrooms could thecity afford to rent each year and break even withthe cost of one permanent facility? Let the interestrate be 6% per year.
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