In a highway construction theres an investment of $120,000, annual maintenance of $12,000 and benefits for...
In a highway construction theres an investment of $120,000, annual maintenance of $12,000 and benefits for the drivers of $22,000 annually. What is the incremental b/C ratio?
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In a highway construction theres an investment of $120,000,
annual maintenance of $12,000 and benefits for...
A federal highway project is expected to have a first cost of $5 million and an...
A federal highway project is expected to have a first cost of $5 million and an annual maintenance cost of S200,000. Shoulder replacement costs of $1,000,000 will be required in 10 years. Benefits to the road-users are expected to be $800,000 per year. If the project will have a 20 year life, please calculate the modified B/C ratio. Is the public project worth undertaking? Why (not)? Hint: Modified B/C ratio: (Benefits-Disbenefits-M&O Costs)/Initial Investment 3)
1) A highway construction company is under contract to build a new roadway through a scenic area ...
1) A highway construction company is under contract to build a new roadway through a scenic area and two rural towns in Colorado. The road is expected to cost $18,000,000, with annual upkeep estimated at S150,000 per year. Additional income from tourist (Benefits) of $900,000 per year is estimated. The road is expected to have a useful commercial life of 20 years. Determine if the highway should be constructed at a discount rate of 6% per year, applying the Conventional...
On September 1, Sapphire Company loaned $120,000, at 10% annual interest, to a customer. $12,000 of...
On September 1, Sapphire Company loaned $120,000, at 10% annual interest, to a customer. $12,000 of interest and and $120,000 principal will be collected when the loan matures one year from the issue date. $4,000 of interest had been earned by December 31. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Sapphire would need to make on December 31, the calendar year-end?
On September 1, Sapphire Company loaned $120,000, at 10% annual interest, to a customer. $12,000 of...
On September 1, Sapphire Company loaned $120,000, at 10% annual interest, to a customer. $12,000 of interest and and $120,000 principal will be collected when the loan matures one year from the issue date. $4,000 of interest had been earned by December 31. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Sapphire would need to make on December 31, the calendar year-end?
A highway construction company is under contract to build a new roadway through a scenic area...
A highway construction company is under contract to build a new roadway through a scenic area and two rural towns in Colorado. The road is expected to cost $10,000,000, with annual upkeep estimated at $150,000 per year. Additional income from tourist (Benefits) of $900,000 per year is estimated. The road is expected to have a useful commercial life of 15 years. The discount rate to evaluate this project is 6% per year. Hint: Disbenefits = $0 and Annual Upkeep is...
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...
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...
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...
I am stuck in this problem, can someone help What is the profntability index ratio for the incremental analysis between...
I am stuck in this problem, can someone help
What is the profntability index ratio for the incremental analysis between the two projects and which project would be chosen if only one of the two projects could be selected Capital 1,500,000 $1,400,000 Investment Project Life 30 30 Annual Benefits $260,000 $240,000 Annual Costs $120,000 $110,000 Salvage Value $90,000 $80,000 7% Discount Rate 7% 1.113,B 1.254,A 1.254,B 1.113,A
What is the profntability index ratio for the incremental analysis between the two...
8) Duck Construction has proposed two alternatives for constructing a new bridge in Orego Based on data from recent...
8) Duck Construction has proposed two alternatives for constructing a new bridge in Orego Based on data from recent bridge construction projects of comparable size, the estimated for each alternative are given below. Use the conventional B-C ratio method, with PW as equivalent-worth measure, to determine which alternative should be selected at an inter of14% per year. Assume a study period of50 years. Alternative II Alternative I Construction and design costs, $M$2,000,000 Annual maintenance, $/yr $2,010,000 $180,500 $160,000 $712,500 $690,000...
Pause and solve Stillwater has initiated discussions on attracting rail service. A depot would need to...
Pause and solve Stillwater has initiated discussions on attracting rail service. A depot would need to be constructed, which would require $500,000 in land and $5.2 million in construction costs. Annual operating and maintenance costs for the facility would be $150,000, and personnel costs would be an additional $120,000. Other assorted costs would be born by the railroad and federal authorities. Annual benefits of the rail service are estimated as listed below $1,300,000 Railroad annual payments $200,000 Rail tax charged...
A federal highway project is expected to have a first cost of $5 million and an annual maintenance cost of S200,000. Shoulder replacement costs of $1,000,000 will be required in 10 years. Benefits to the road-users are expected to be $800,000 per year. If the project will have a 20 year life, please calculate the modified B/C ratio. Is the public project worth undertaking? Why (not)? Hint: Modified B/C ratio: (Benefits-Disbenefits-M&O Costs)/Initial Investment 3)
1) A highway construction company is under contract to build a new roadway through a scenic area and two rural towns in Colorado. The road is expected to cost $18,000,000, with annual upkeep estimated at S150,000 per year. Additional income from tourist (Benefits) of $900,000 per year is estimated. The road is expected to have a useful commercial life of 20 years. Determine if the highway should be constructed at a discount rate of 6% per year, applying the Conventional...
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...
I am stuck in this problem, can someone help
What is the profntability index ratio for the incremental analysis between the two projects and which project would be chosen if only one of the two projects could be selected Capital 1,500,000 $1,400,000 Investment Project Life 30 30 Annual Benefits $260,000 $240,000 Annual Costs $120,000 $110,000 Salvage Value $90,000 $80,000 7% Discount Rate 7% 1.113,B 1.254,A 1.254,B 1.113,A
What is the profntability index ratio for the incremental analysis between the two...
8) Duck Construction has proposed two alternatives for constructing a new bridge in Orego Based on data from recent bridge construction projects of comparable size, the estimated for each alternative are given below. Use the conventional B-C ratio method, with PW as equivalent-worth measure, to determine which alternative should be selected at an inter of14% per year. Assume a study period of50 years. Alternative II Alternative I Construction and design costs, $M$2,000,000 Annual maintenance, $/yr $2,010,000 $180,500 $160,000 $712,500 $690,000...
Pause and solve Stillwater has initiated discussions on attracting rail service. A depot would need to be constructed, which would require $500,000 in land and $5.2 million in construction costs. Annual operating and maintenance costs for the facility would be $150,000, and personnel costs would be an additional $120,000. Other assorted costs would be born by the railroad and federal authorities. Annual benefits of the rail service are estimated as listed below $1,300,000 Railroad annual payments $200,000 Rail tax charged...
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