Calculates the percent return to the investment

Assignment Help Corporate Finance

Reference no: EM1346353

A new tax is levied on airline profits to finance improvements in the nation's airports. The current market rate of interest is 8%. However, airline profits are subject to a 50% tax. A cost-benefit analysis calculates the percent return to the investment in new air facilities to be 12%. Will net benefits from resource use increase as a result of construction of new air travel facilities?

Reference no: EM1346353

Questions Cloud

Find total gross profit margin in dollars per unit : Nevada Corporation provided the following data regarding its only product: Determine the total gross profit margin (gross profit) for this product?

Compute the unweighted-average nominal tariff rate : Compute the unweighted-average nominal tariff rate for Tarheelia nominal tariff rate for Tarheelia.

Prepare a strategic plan along with a communication plan : A business is heading and wanting to enhance where the organization has been, an organization needs to prepare a strategic plan along with a communication plan

What is the frequency of vibrations : An airplane moves 140 m/s as it travels around the vertical circular loop which has a 1 km radius. What is the magnitude of the resultant force on the 70 kg pilot of this plane at the bottom of this loop.

Calculates the percent return to the investment : A new tax is levied on airline benefits to finance improvements in the nation's airports. The current market value of interest is 8 percent. However, airline benefits are subject to a 50 percent tax.

What is each fisherman profit-maximizing output now : What is each fisherman's profit-maximizing output now. Find the market price and the total output.

What will be the confidence interval for the population mean : A random sample of 42 college graduates revealed that they worked the average of 5.5years on the job before being promoted. The population standard deviation was 1.1 years. Using 0.99 degree of confidence, what is the confidence interval for the po..

Intercultural communication - studying cultures : Intercultural report written for colleagues about to embark on business meetings in a new country such as Brazil or Turkey.

Explain what is the tension in each wire : A wrench 0.3 meters long lies along the positive y-axis, and grips a bolt at the origin. A force is applied in the direction of langle 0, 1, 2rangle at the end of the wrench. Find out the magnitude of the force in newtons needed to give 100 newton..

User Account

All Pages