Solution-Calculate the bc ratio using an interest rate of

Calculate the bc ratio using an interest rate of six percent

Assignment Help Cost Accounting

Reference no: EM13882113

The cost of grading and spreading gravel on a short rural road is expected to be $300,000. The road will have to be maintained at a cost of $25,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be reached with off-road vehicles. The improved accessibility has led to a 150% increase in the property values along the road. If the previous market value of a property was $900,000, calculate the B/C ratio using an interest rate of 6% per year and a 20-year study period.

Reference no: EM13882113

Questions Cloud

What kinds of systems are described in this case : What kinds of systems are described in this case? Identify and describe the business processes each supports. Describe the inputs, and outputs of these systems

The common stock of auto deliveries sells : The common stock of Auto Deliveries sells for $26.96 a share. The stock is expected to pay $1.90 per share next year when the annual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.7 percent annuall..

What are the stylistic qualities of that period of music? : What are the stylistic qualities of that period of music?

Fama-french three-factor model : An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 4%, the market return is 10%, the return on the SMB portfolio (rSMB) is 3.6%, and the return on the HML portfolio (rHML) is 5.4%. If ai = 0, b..

Calculate the bc ratio using an interest rate of six percent : If the previous market value of a property was $900,000, calculate the B/C ratio using an interest rate of 6% per year and a 20-year study period.

Amounts of liquid and vapor products : A liquid mixture consisting of 100 kmol of 60 mol% benzene, 25 mol% toluene, and 15 mol% o-xylene is flashed at 1 atm and 100°C. (a) Compute the amounts of liquid and vapor products and their composition.

How business will be able to capitalize on the benefits : How business will be able to capitalize on the benefits - and how it can be used in different companies for different solutions

Set of cash flows if the relevant discount rate : Consider the following cash flows: Year Cash Flow 0 −$31,000 1 17,300 2 15,200 3 10,600 Requirement 1: What is the profitability index for the above set of cash flows if the relevant discount rate is 10 percent? (Do not round intermediate calculation..

Planning to buy house appraised : You are planning to buy a house appraised for $350,000 and finance it through a mortgage of $250,000. You would then have a loan-to-value ratio of 0.714, safely below the cutoff by your lender of 0.80. Being securely employed, your take-home pay is $..

User Account

All Pages

Calculate the bc ratio using an interest rate of six percent

Reference no: EM13882113

Reference no: EM13882113

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT