Parking Structures, Inc.believes that by adding new bright lighting to their main downtown parking garage

| September 29, 2018

Parking Structures, Inc. . believes that by adding new bright lighting to their main downtown parking garage, from Lighting Designs, Inc. usage of the new lighting will allow the revenues from the garage to increase to $1,250,000 from the current level of $1,110,000, both in today’s dollars. The new lighting will cost $80,000 to install. (Assume there are no other cash flows involved.) Determine the marginal (added) benefits of the new lighting and the net benefit of the proposed new lighting. Should the manager recommend the change?

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