Two alternative recreation projects

Assignment Help Business Economics
Reference no: EM135999

Q. A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years. (Assume the benefits are realized at the ends of years 1 through 10). Project L would require construction costs of $4 million and generate net benefits of $1 million per year for 20 years. (Assume the benefits are realized at the ends of years 1 through 20). If these figures are in real dollars, and the real discount rate is 8 percent, which project would the county select? Show you calculations. Provide me with sufficient information so I can tell how arrived at you decision.

Reference no: EM135999

Questions Cloud

Short-run demand for gasoline is less elastic : Why the short-run demand for gasoline is less elastic than the long-run demand, when the price of gasoline rises, people immediately cut back on unnecessary trips.
Unemployment insurance in the united states : Assuming labour demand is downward sloping and that the labour market is competitive, what happens to national income as a result in immigration.
Extremely expensive to monitor : A firm that finds it extremely expensive to monitor the output of each worker will likely pay its workers
Unions usually advertise to its members and potential member : Which of the government policies below is not likely to encourage per capita economic growth.
Two alternative recreation projects : A county is considering using a piece of park land for one of two alternative recreation projects.
Hiro nakamura is ceo of the cola king bottling company : Hiro Nakamura is CEO of the Cola King Bottling Company, a small regional producer operating in the Pacific Northwest. Nakamura is considering two alternative expansion proposals
Find the equilibrium values of the real interest rate : Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Wacc break point that is associated with retained earnings : If MMM's capital structure consists of 25% debt and 75% equity, stated in total funds, what is the WACC break point that is associated with retained earnings
Active policy approach be more politically popular : Some economists argue that only unanticipated increases in the money supply can affect real GDP.

Reviews

Write a Review

Business Economics Questions & Answers

  Why firm shut down

A competitive firm that is profit maximizing pays a wage. The firm has started marketing its new product.

  Firm pollutes a stream

Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.

  Describe economic contraction and economic expansion

Describe the difference between Economic contraction and Economic expansion

  Industry significantly increases advertising expenditures

Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.

  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.

  Draw the production possibility curve

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

  One firm in an industry significantly

Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.

  Three adm executives

One of the three ADM executives was actually an informant who tipped off the Feds about this conspiracy. Which executive was he. Why did he rat out his co-workers.

  Find the equilibrium values of the real interest rate

Find the equilibrium values of the real interest rate, consumption, investment, and the price level.

  Indicate if gdp is affected

Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.

  Resources market and the product market

Distinguish between the resources market and the product market in the circular flow model.

  The largest loan that the bank can make

The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.

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