A state highway department is considering a bypass loop that is expected to save motorists $815,000 per year in gasoline and other automobile-related expenses. However, local businesses will experience revenue losses estimated to be $149,000 each year. The cost of the loop will be $8,600,000. Calculate the conventional B/C ratio using an interest rate of 8% per year and a 25-year project period.
Present value of net benefits = (815000 - 149000) * (P/A, 8%,25)
= 666000 * 10.674776
= 7109400.94
B/C ratio = Present value of net benefits / Initial cost
= 7109400.94 / 8600000
= 0.83
As B/C ratio is less than 1, this project should not be selected
A state highway department is considering a bypass loop that is expected to save motorists $815,000...
The city of Ottawa is considering to build a new toll highway that spans from Orleans to Kanata, the project cost is estimated to be $90,000,000 and is to be paid in 3 equal payments (Payment 1 before commencement, Payment 2 at the end of the 1st year and Payment 3 at the end of 2nd year when the construction is done). The feasibility assessment of this project is 25 years after construction. This highway benefits the city a total...
Question 2 (30%) The city of Ottawa is considering to build a new toll highway that spans from Orleans to Kanata, the project cost is estimated to be $90,000,000 and is to be paid in 3 equal payments (Payment 1 before commencement, Payment 2 at the end of the 1st year and Payment 3 at the end of 2nd year when the construction is done). The feasibility assessment of this project is 25 years after construction. This highway benefits the...
INTRODUCTION Jaden McCoy operated a dairy goat farm in Soddy-Daisy, Tennessee, and was considering expanding the rental of his goats for land clearing. In early 2011, McCoy successfully bid on a job to clear a section of property at a nearby resort. McCoy's goats performed as expected and he eamed a small profit in the process. The resort manager was quite happy because the difficult-to-reach areas of the property were cleared on time and on budget at a cost well...
Analyze the case the answer the questions:
introduction of the case
assess the financial reporting landscape considering the user
needs, constraints, and business environment,
identify the issues,
analyze the issues (qualitatively and quantitatively), and
provide a recommendation and conclusion.
Original content only no copy-paste, please
INTRODUCTION Jaden McCoy operated a dairy goat farm in Soddy-Daisy, Tennessee, and was considering expanding the rental of his goats for land clearing. In early 2011, McCoy successfully bid on a job to clear a...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT 1 Consolidated Results of Operations for the Years Ended December 31 Dollar is willions cat pershare dal Sales and revenues Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Goodwill impairment charge Other operating incomel expenses Total operating costs...
What happened on United flight 3411?What service expectations
do customers have of airlines such as United and How did these
expectations develop over time?
Thank You!
In early April 2017, United Airlines (United), one of the largest airlines in the world, found itself yet again in the middle of a service disaster this time for forcibly dragging a passenger off an overbooked flight. The incident was to become a wake-up call for United, forcing it to ask itself what to...
I have this case study to solve. i want to ask which
type of case study in this like problem, evaluation or decision? if
its decision then what are the criterias and all?
Stardust Petroleum Sendirian Berhad: how to inculcate the pro-active safety culture? Farzana Quoquab, Nomahaza Mahadi, Taram Satiraksa Wan Abdullah and Jihad Mohammad Coming together is a beginning; keeping together is progress; working together is success. - Henry Ford The beginning Stardust was established in 2013 as a...
I need Summary of this Paper i dont need long summary i need
What methodology they used , what is the purpose of this paper and
some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...