A car company has decided to spend $150,000,000on a museum

Chapter , Problem 9-59

(choose chapter or problem)

A car company has decided to spend $150,000,000on a museum for exhibiting its classic cars. Landcan be purchased for $500,000. The museum build-ing will require 30,000 square feet of general space,while each car displayed will require an additional 1000 square feet. The design and planning processwill cost $100,000, which should be paid immedi-ately. The construction of the building will cost $600per square foot, and the building will be completedwithin the next 2 years, while the cost of construc-tion will be distributed evenly between the 2 yearsof construction. All cars will be purchased duringthe second year of construction at an average costof $120,000 per car. The annual operation of themuseumwill cost $2,000,000 plus $30,000 per car. Ifthe funds are invested at 9% per yearand the museumis to exist forever, how many cars should the trusteesplan to purchase?Contributed by Hamed Kashani, Saeid Sadri, andBaabak Ashuri, Georgia Institute of Technology