What is the annual worth of the tunnel

Assignment Help Financial Management

Reference no: EM132020092

The Supreme Leader of Boratastan decides whether to build a tunnel into Aggieland. The tunnel will last forever.

It has the initial cost of $1,000, the annual operating costs of $200, and the annual revenues of $400. What is the annual worth of the Tunnel?

Reference no: EM132020092

Questions Cloud

How much profit should essetle construction report : It expects the project will be completed on time and on budget. How much profit should Essetle Construction report for the second year of the contract

Show the effects of the payroll accrual on june : For the payroll period ended on June 25, 2013, gross pay was $14,300, Use the horizontal model to show the effects of the payroll accrual on June 25, 2013

What is their federal tax liability : What is their federal tax liability? What is their marginal tax rate? What is their average tax rate?

Which repayment option should you choose : To maximize your money, which repayment option should you choose? Please explain in 1-2 sentences only.

What is the annual worth of the tunnel : It has the initial cost of $1,000, the annual operating costs of $200, and the annual revenues of $400. What is the annual worth of the Tunnel?

How long will it be before she pays off the card : Susan recently received a credit card with a nominal interest rate of 19 percent. with the card, she purchased some new clothes for $325.

What is the most likely stock price one year from now : If the required return (rs) for Swanson is 15%, and the most recent dividend paid (D0) was $2.00, what is the most likely stock price one year from now?

What is the value of the depreciation tax shield in year : Annual sales are estimated at $750,000 with costs of $338,000. The required rate of return is 12 percent and the tax rate is 34 percent.

Determine the net present value of the stream of profits : Build a pro forma (forecasted) income from a economic approach for the same period and determine the expected EVA.

User Account

All Pages