A toll bridge across the Mississippi River is being considered as a replacement for the current...
A toll bridge across the Mississippi River is being considered as a replacement for the current 1-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be $17,300,000, and $310,000 per year in operating and maintenance costs are anticipated. In addition, the bridge must be resurfaced every sixth year of its...
A toll bridge across the Mississippi River is being considered as a replacement for the current 1-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become apart of the us interstate highway system, the B-C ratio method must be applied in the elevation. Investment costs of the structure are estimated to be 17,100,000, and 311,000 per occurance(no resurfacing cost in year 25). Revenues generated from the toll are anticipated to be 2,300,000 in its first year of...
A toll bridge across the Mississippi River is being considered as a replacement for the current 1-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be $17,200,000, and $332,000 per year in operating and maintenance costs are anticipated. In addition, the bridge must be resurfaced every fourth year of its...
A city council considers to construct a new toll bridge across the river. Investment cost of the bridge is estimated to be $7,000,000 with an annual operating and maintenance costs of $130,000 per year. In addition, the bridge must go through a comprehensive maintenance in every fifth year of its 30-year expected life at a cost of $500,000 per occurrence (no cost in year 30). It is expected 200,000 vehicles per year to cross the bridge. The city plans to...
The answer is shown in the picture, i want to know how they got it, please show all your work and if you are using excel please show your formulas, Thank You and good luck. Toll lanes on a section of the 1-40 freeway are being considered in order to reduce traffic congestion and travel times Since this is a government project, the B-C ratio method must be applied in the evaluation. Construction costs of the project are estimated to...
Toll lanes on a section of the l-40 freeway are being considered in order to reduce traffic congestion and travel times. Since this is a government project, the B-C ratio method must be applied in the evaluation. Construction costs of the project are estimated to be $18,600,000, and $321,000 per year in operating and maintenance costs are anticipated. In addition, the lanes must be resurfaced every fourth year of their 20-year projected life at a cost of $1,110,000 per occurrence...
please solve using factors 5. A new bridge across the Allegheny River in Pittsburgh is expected to be permanent and will have an initial cost of $30 million. This bridge must be resurfaced every 5 years at a cost of $1 million. The annual inspection and operating costs are estimated to be $50,000. Determine its equivalent annual worth at an interest rate of 10% per year.
7. A proposed bridge on the interstate highway system is being considered at the cost of $2 millin It is pring 2019 expected that the bridge will last 20 years. The federal and state governments will pay these construction costs. Operation and maintenance costs are estimated to be $180,000 per year. Benefits to the public are estimated to be $900,000 per year. The building of the bridge will result in an estimated cost of $250,000 per year to the general...
7. A proposed bridge on the interstate highway system is being considered at the cost of $2 millin It is pring 2019 expected that the bridge will last 20 years. The federal and state governments will pay these construction costs. Operation and maintenance costs are estimated to be $180,000 per year. Benefits to the public are estimated to be $900,000 per year. The building of the bridge will result in an estimated cost of $250,000 per year to the general...
1. LL Incorporated's currently outstanding 10% coupon bonds have a yield to maturity of 13%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL's after-tax cost of debt? Round your answer to two decimal places. 2. Summerdahl Resort's common stock is currently trading at $36.00 a share. The stock is expected to pay a dividend of $2.50 a share at the end...