Calculate the conventional bic ratio

Assignment Help Financial Accounting
Reference no: EM133127335

Question - The cost of grading and spreading gravel on a curvy rural road is expected to be $300,000. The road will have to be maintained at a cost of $267000 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 164% increase in the property values along the road. If the previous market value of the property was $900,000, calculate the conventional BIC ratio using an interest rate of 6% per year and a 20-year study period.

Reference no: EM133127335

Questions Cloud

Describe motivation for choosing this artistic expression : Describe the motivation for choosing this artistic expression. Describe the meaning/symbolism of your work.
What is the increase or decrease in income : The cost to transfer funds into this account is P500 each time. What is the increase/(decrease) in income if the Optimum Cash Balance model was applied
What is the contribution margin : The contribution margin earned on regular customers (unaffected by this deal) is much higher, at €32. What is the contribution margin that managers
What is the budgeted production : Mickey, Inc. manufactures ball pens and has a master-budget capacity for 2022 of 452,000 units. What is the budgeted production
Calculate the conventional bic ratio : If the previous market value of the property was $900,000, calculate the conventional BIC ratio using an interest rate of 6% per year and a 20-year study period
How much is the net benefit of this bank service : YY can invested freed cash into a mutual fund to earns 5% annually. How much is the net benefit/(cost) of this bank service
What was the effect on mje retained earnings : Ordinary share, P 10 par value, authorized 200,000 shares; issued and outstanding 120,000 shares $1,200,000. What was the effect on MJE retained earnings
How much is the total shareholders equity : Issued 50,000 shares in exchange of Building with book value of $3,500,000. How much is the Total Shareholders equity
Prepare the depreciation journal entry for the year : Prepare the depreciation journal entry/entries for the year ended 31st December 2019 using the Re-allocation Method

Reviews

Write a Review

Financial Accounting Questions & Answers

  Estimate the companys weights of capital

Estimate the companys weights of capital and estimate the companys before-tax and after-tax component cost of debt.

  What is the amount of incentive pay

The number minutes transcribed is 1,200, minimum required biweekly production is 1,200, what is the amount of her incentive pay?

  What single payment would be equivalent

What single payment in 27 months would be equivalent to these scheduled payments if money is worth 3% compounded quarterly?

  Determine styka repair shops current liabilities as december

Determine Styka Repair Shop's current liabilities as of December 31, 2014. What additional information would you want from Styka to satisfy yourself that all current liabilities have been identified?

  What is jacks adjusted gross income

This year Jack intends to file a married-joint return with two dependents. Jack received $167,800 of salary and paid $6,550 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. What is Jack's adjusted gross income..

  Prepare a statement of comprehensive income in accordance

Prepare a statement of comprehensive income in accordance with the requirements of AASB 101. Mackay Ltd reported sales revenue of $16 million

  Problem 1gbk inc is considering a new product the proposal

problem 1gbk inc. is considering a new product. the proposal is as followsnbspnbsp project cost 2000000 nbspnbsp

  Describe specific business situation which illustrates point

Describe a specific business situation which illustrates the above point. what's going on with their department's costs and revenues

  How would use capital budgeting to ensure is good investment

Give an example of a business investment venture and how you would use capital budgeting to ensure it is a good investment.

  Describe each of the three business functions

There are three important business functions that are performed by the six components of AIS. Describe each of the three business functions and the six components of AIS

  How much do have to pay to buy the asset

Asset generates returns of $13,500 at the end of each year for ten years. The required rate of return is 6%. How much do you have to pay to buy this asset?

  What weight should horace hold in the risk-free asset

The risk-free asset is returning 4% per annum. Horace Hanley wishes to earn a return of 9%. What weight should Horace hold in the risk-free asset?

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