What is the implied interest rate for postponing the bike

Assignment Help Business Economics
Reference no: EM131810193

Under pressure to "complete" a road project, the bike path that goes with it is being postponed. Doing it now would cost $35,800. Instead, it will be included in the transportation improvement program package that is now being assembled. Because of the state and federal budget cycles, the bike path will be built 3 years from now. The expected cost of doing it then is $68,000. What is the implied interest rate for postponing the bike path?

Reference no: EM131810193

Questions Cloud

Year for street cleaning : A road costs $450,000 to build and $12,000 per year for street cleaning. The road is re-striped every 2 years for $28,000 and repaved every
Probability of drawing tickets with numbers : A game consists of drawing tickets with numbers on them from a box, independently with replacement. In order to play you have to stake $2 each time.
State department of interior : The state Department of Interior (DOI) must ensure the continued quality of the environment. The state Budget Department has informed the DOI
Develop an equation for utility costs in the form y : Using the high/low method, develop an equation for utility costs in the form Y = a +bX
What is the implied interest rate for postponing the bike : The expected cost of doing it then is $68,000. What is the implied interest rate for postponing the bike path?
Implied interest rate for forgoing the repairs : The building will cost $2.8M to replace. Determine the implied interest rate for forgoing the repairs.
Construction at the local airport : Runway construction at the local airport is expected to cost $35M. The runway will require maintenance costing $200K per year. At the end of each 6-year period
Indicate the effect of the transaction on assets : Indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name.
What is the required benefit per vehicle : The state highway department uses an interest rate of 6%, and 800 vehicles per day will go over the bridge. What is the required benefit per vehicle to justify

Reviews

Write a Review

Business Economics Questions & Answers

  Use a t-account to show the impact of this transaction

Suppose that the Federal Reserve purchases $10 million in securities [T-bills] from First National Bank by increasing FNB’s account at the Fed. Use a T-account to show the impact of this transaction on FNB’s balance sheet. Remember that the funds a b..

  What is the difference between a movement along

Choose a product or service.  How does price elasticity of demand for this product or service affect how it is priced? How does the availability of substitutes for this product or service affect price elasticity of demand? What is the difference betw..

  What would be the value of domestic spending

In the island nation of Isolandia the GDP in period 1 is recorded as $1,600 billion. The nation runs a current account deficit of $200 billion in this period, due to which it borrows money at a market rate of interest of 4 percent. Compute the value ..

  The market demand curve in perfect competition is found

The market demand curve in perfect competition is found by. When there are large numbers of buyers and sellers,

  Each factors shape the growth and changes of industry

What factors in economic segment can have significant impact on U.S. restaurant industry? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the industry?

  Nash equilibrium-set up the game as a simultaneous move game

After a few years of monopoly, the family that owns the Coca-cola monopoly gets in a fight, and they split the company in two. Now there are two large Coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pri..

  Estimated regression equation

Estimated regression equation for which quantifies the demand for Widget

  Explain how much does the total amount of deposits

Explain how much does the total amount of deposits in the banking system increase? By how much does the money supply increase.

  What is the combined consumer surplus

What is the combined consumer surplus for the customers who buy the Porsche Spyders when the market price is $835,000?

  Explain four effects of globalization that affect san diego

Explain at least four effects of globalization that affect San Diego and The Military? Explain how the government is effective in promoting global business?

  Does the most ferocious lion eat the christian

Ten lions confront a single Christian. The most ferocious lion can eat the Christian if he wants to. If the most ferocious lion does not eat the Christian, everyone goes home.

  Competitive industry faces equilibrium product price

Suppose a firm in a competitive industry faces an equilibrium product price of $2 per unit of output. Table A provides information on the output produced by various amounts of labor. Use this information to complete the remaining columns of Table A, ..

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