Annual loss of population and property values

Assignment Help Business Economics

Reference no: EM131810834

Ruralville is suffering a 1% annual loss of population and property values. Even so, Ruralville must maintain its tax collections at a constant value of $3.2 million. If the inflation rate is 4.5%, what inflation rate in taxes for the remaining taxpayers is required for Ruralville to attain its goal? (Note : Although Ruralville uses a rate of 6% for discounting purposes, that rate is irrelevant to this problem.)

Reference no: EM131810834

Questions Cloud

Sandoval maintains an ending finished goods inventory : Sandoval has been following this inventory policy for several years

Average operating pressure for the pump a circuit : Average operating pressure for the Pump A circuit is estimated to be 1600 psi. Pump and motor overall efficiencies are estimated to be 93.5%.

Minimum attractive rate of return : The minimum attractive rate of return (MARR) is 7%. Use rate of return analysis to determine which alternative is preferable

Find the equivalent annual cost after taxes : Assume the real MARR is 8%, and the inflation rate is 5%. Find the equivalent annual cost after taxes. Does inflation increase or decrease the annual cost?

Annual loss of population and property values : Ruralville is suffering a 1% annual loss of population and property values. Even so, Ruralville must maintain its tax collections at a constant value

Record the issuance of bonds and warrants : Mickey Corp. issued 3,000 $1000 bonds at 105. Use the proportionate method to record the issuance of bonds and warrants

Compare the expected pressure drop in the line : An 8 GPM flow of petroleum oil is being delivered through a 0.5- in. hose to a hydraulic motor. The hose length is 16 ft, and no elbows or other fittings.

Before-tax rate of return : After taking an 8% inflation rate into account, what was his before-tax rate of return?

What is the current break-even point in units : The manager of Calypso, Inc. is considering raising its current price of $35 per unit by 10%. What is the current break-even point in units

User Account

All Pages