Arizona is considering a new waste disposal system

Assignment Help Business Economics

Reference no: EM13744161

A city government in Arizona is considering a new waste disposal system. It has two options.

Option A needs an outlay of $500,000 and requires O&M costs of $50,000 annually

Option B needs an outlay of $450,000 with O&M cists of $95,000 annually.

Both projects have a 15 year life with no salvage value. At the end of the 15 years the city will re-evaluate the success of their assessed $100,000 per year to cover the new system. The standard interest rate for fund for the city is 6%. Your team has been requested to analyze the systems and decide which system to use. The city is used to seeing cost/benefit ratio analyses so you decide to use BC(i). Which system do you recommend? Show all calculations

Reference no: EM13744161

Questions Cloud

Gdp calculations : GDP Calculations; Consumption $300 Imports $30, Government purchases 150 exports 80, GNP 700, Gross Private Dom. Invest 100, a. Using the data in the table above, GDP is equal to _______.

What no longer exists and therefore can not be seen directly : what no longer exists and therefore can't be seen directly. In your opinion, does this fact weaken Carr's belief that history should be regarded as a science? If so, why? If not, why not?

Learning and growth and internal business process : ZZ Tire Company started as retail installer of tires on cars 10 years ago. They now have 400 retail stores, installing about 10,000 tires per store per year and selling a total of 4 million tires. 5 years ago, they decided to start manufacturing thei..

Advantages and drawbacks of demographic transition : Include the following points in your timeline in order to examine the advantages and drawbacks of demographic transition in your selected country

Arizona is considering a new waste disposal system : A city government in Arizona is considering a new waste disposal system. It has two options. Option A needs an outlay of $500,000 and requires O&M costs of $50,000 annually

Provide the examples of redistributive programs : Medicare and Medicaid are two examples of redistributive programs. The concept of sustainable development would NOT be consistent with which one of the following ideas.

Best definition of privacy : Conflicts of interest are an ethical problem for a business because they _______. One of the biggest issues in consumer privacy is when _______. Which of the following is the best definition of privacy?

Between the price elasticity of demand and total revenue : Total revenue is calculated as the quantity of a good or service sold multiplied by its market price. Thus, it is a measure of how much money a company makes from selling its product. The core objective of a firm is maximizing profit.

Cost of debt-cost of preferred stock : (Cost of debt) Belton is issuing a $1,000 par value bond that pays 7 percent annual interest and matures in 15 years. Investors are willing to pay $958 for the bond. flotation costs will be 11 percent of market value. The company is in an 18 perce..

User Account

All Pages