Calculate the conventional and the modified bc ratios

Assignment Help Business Economics
Reference no: EM131112409

A transit project is being evaluated. This project is expected to cost $10M to construct and have a life of 30 years. The benefits associated with the project is $1.2M per year; however the disbenefits associated with the project is $300,000 in year 1 and will decrease by 8% each year. Maintenance and operation costs are $50,000 in the first year and will increase by $5,000 each year thereafter. Given a return on investment of 5%, calculate the conventional and the modified B/C ratios. Should the transit agency invest?

Reference no: EM131112409

Questions Cloud

Society consists only of owner of cedar trees-apple farmer : In a well-known legal case, Miller v. Schoene, a classic conflict of property rights was featured. Red cedar trees, used only for ornamental purposes, carried a disease that could destroy apple orchards within a radius of two miles. Suppose society c..
Depreciation deduction and resulting unrecovered investment : A surface mount PCB placement/soldering line is to be installed for $1.6 million. It will have a salvage value of $100,000 after 5 years. Determine the depreciation deduction and the resulting unrecovered investment (adjusted basis) during each year ..
Determines the optimal rotation period of forest resource : What economic principle determines the optimal rotation period of a forest resource?
What are the implications of interest rate on the decision : The decision to take a stream of income available from sustainable forest management practices or clear cut timber on a private land depends on the interest rate. What are the implications of interest rate on the decision (both high and low)?
Calculate the conventional and the modified bc ratios : A transit project is being evaluated. This project is expected to cost $10M to construct and have a life of 30 years. The benefits associated with the project is $1.2M per year; however the disbenefits associated with the project is $300,000 in year ..
Discuss about the conditions under which this might happen : Occasionally, companies will use media contrary to normal industry practice. For example, a B-to-B product might be advertised on network TV and a frequently purchased product would use no TV advertising. Discuss about the conditions under which this..
Traditional bank loan and asset-based borrowing : Explain why the following funding sources would or would not be appropriate for these entrepreneurs: family and friends, angel investors, an IPO, a traditional bank loan, asset-based borrowing, or one of the many federal or SBA loans.
Why in the long-run perfect competition : why in the long-run perfect competition, price is at a minimum average cost. why marginal revenue is less than price in monopoly. what is price discrimination and what are the conditions for it to occur and why.
What is the growth rate of inflation-adjusted tuition : Assume tuition cost $6,142 (per semester) in 2007 and $7562 in 2021. Price index was 207.34 in 2007 and 226 in 2012. What is the 2007 tuition fee in 2012? What is the growth rate of inflation-adjusted tuition fee from 2007 to 2012? What is the inflat..

Reviews

Write a Review

Business Economics Questions & Answers

  U.s. manufacturer of personal computers

PC-World is a U.S. manufacturer of personal computers. The CEO is looking at opportunities for off-shore production. The selection of the country where PC-World will establish a production facility will depend on the following two factors: 1. The loc..

  An organizational architecture point of view

Illustrate what were Enron's problems from an organizational architecture point of view.

  Car depreciation problem

Car Depreciation problem: A common complaint is that a new car will depreciate by 25% as soon as the new owner drives it off the lot. This information comes from resale price data from cars sold just months after the initial purchase. How does advers..

  Major factors that affect economic development

Researchers have come to conclusion that corruption is one of the major factors that affect the economic development in many developing countries. In other words, these countries are not developed because of corruption. What is your reaction to this ..

  Find the gdp deflator and nominal gdp

Angola economists are working on the country's figues. Find the (a) GDP deflator (b) Nominal GDP (c) Real GDP (d) what is the growth for Angolan GDP for 2013? If the 2013 price is $10, quantities = 50 million; While the year 2000, which is the base y..

  Explain how a decrease in the level of taxes

Assume that Indonesia is a small open economy. Explain how a decrease in the level of taxes (T ∗ ) in the rest of the world affects the world interest rate, the Indonesian interest rate, level of investment, net exports and net capital outflows in In..

  First theorem of welfare economics

Suppose that there is a negative externality in the market for trout in Colorado. Letting Q represent pounds of trout, explain (using graphs and words) why government intervention in the market for trout may be appropriate.

  What is price elasticity and income elasticity

The equation for a demand curve has been estimated to be Q=100 - 10P + 0.5Y. what is income elasticity? what is price elasticity?

  What could the federal reserve system fed do

What could the federal reserve system Fed do in 2000 in order to bring the economy back to full employment ? What did the Fed actually do? explain

  Which the government has implemented industrial policies

Select a country in which the government has implemented industrial policies. Have the industrial policies contributed significantly to the country’s economic growth? Have the policies lead to problems in the country’s economy? Need citation

  Example of a change in the quantity demanded

Which of the following is an example of a change in the quantity demanded? (Hint. For which items is there a direct change in price that leads to a change in quantity demanded) Markets are more efficient when information is perfect; an example is:

  Difference in federal funds rate and discount rate

What is the difference between the Federal Funds Rate and the Discount Rate? Please explain the difference by providing an explanation of each rate and their purposes. Is there anything else that the Federal Reserve can do to change the supply of mon..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd