The City of Brisket is considering a new project. City planners are trying to figure out the present worth of building a park. The city will purchase the land for $706739. Maintenance and utilities will initially cost $114684, and they are estimated to increase by 11% each year. The city will made periodic upgrades to the park. They estimate they will spend $73056 at the end of year 4 for a bird watching kiosk. They will spend $169259 at the end of year 7 for a gazebo and a formal garden. At the end of year 15, they plan to install a water feature at a cost of $427333.
With the installation of the formal garden, the city believes it can begin generating revenue from that area of the park by issuing permits for large groups or special occasions. The city is estimating that by the end of year 13, the permit revenue will be $60970, increasing by $26573 each subsequent year.
Calculate the present worth of the park project using a 30-year life span and an interest rate of 7%, compounded annually.
Notes:
The first year of revenue is at the end of year 13
Be sure to count the years carefully when calculating the years for the permit revenue
Enter your answer in this form: 12345
Round your answer. Do not use a dollar sign ("$"), any commas ("$"), or a decimal point (".").