Calculate the present worth of annual expenditures

Assignment Help Business Economics
Reference no: EM132015061

A municipality has just completed construction of a bridge. It was defined that operation and maintenance (O&M) of this bridge will cost the city $20,000 for the first year with a 5% increase each year thereafter for the next 4 years. The bank rate is 7.5% a year. What interest rate should be used to calculate the present worth of annual expenditures on O&M during the upcoming five year period following the completion of the bridge?

Reference no: EM132015061

Questions Cloud

Management or organization of world bank group : Please explain to me the structure organization of the world bank group "Management or Organization of World Bank group"
Who is involved and what are the choices : Computers, email, and the Internet are to be used primarily for official company business. Small amounts of personal email can be exchanged.
How will it affect the productivity-technological innovation : How will it affect the productivity, technological innovation, and GDP if the financial industry is able to lure highly skilled graduates into the financial
Call price at the prevailing interest rate at the call date : What is the yield to call to an investor who reinvests the call price at the prevailing interest rate at the call date?
Calculate the present worth of annual expenditures : What interest rate should be used to calculate the present worth of annual expenditures on O&M during the upcoming five year period following the completion?
What is gain or loss to investor who is short three contract : A Eurodollar futures price changes from 96.76 to 96.80. What is the gain or loss to an investor who is short three contracts?
Explain the definition of social psychology : One of the central premises of social psychology is the power of the situation. The very definition of social psychology reflects this, pointing out.
Mattel is currently considering two pricing strategies : Each of the high-value consumers buys one doll and two accessories and is willing to pay $157 in total. Mattel is currently considering two pricing strategies:
Coupons are reinvested at the yield to maturity : Find the yield to maturity. Find the realized yield, assuming that coupons are reinvested at the yield to maturity.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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