What other factors might you want to take into account

Assignment Help Econometrics
Reference no: EM131204696

By the numbers. You are asked to carry out a cost-benefit analysis for a new parking lot. The cost of the parking lot is $3,000,000. Annual maintenance and operating expenses are $60,000. The revenue from users, including the estimated value of "free" parking for city employees, is $200,000 a year, and the parking lot has an estimated useful lifetime of 15 years. At a 5 percent rate of discount, what is the cost-benefit ratio for this project? What other factors might you want to take into account? How would your answer be different if the interest rate was 8 percent?

Reference no: EM131204696

Questions Cloud

Charges of unethical behavior on targets behalf : Does being in compliance with the law negate any charges of unethical behavior on targets behalf?
Describe metacognition in your own words : Describe metacognition in your own words. What are some metacognitive skills that you utilize when learning something new? Why do you think it is important for students to have these skills? How can students be taught to think? Provide at least tw..
Causes and effects of the global financial crisis : FIN202 - Financial Institutions - "CAUSES AND EFFECTS OF THE GLOBAL FINANCIAL CRISIS OF 2007-09, WITH SPECIAL REFERENCE TO THE IMPACTS ON FINANCIAL MARKETS, INSTITUTIONS AND INSTRUMENTS"
What is a communications plan used : What is a communications plan used for and why is it important?
What other factors might you want to take into account : What other factors might you want to take into account? How would your answer be different if the interest rate was 8 percent?
Understand the new culture and corporate structure : Design 5 interactive, engaging activities to help employees: Get in touch with their innovative, creative side and encourage team building. Understand the new culture and corporate structure.
Why would your research question be important to study : What lessons did you learn from studies such as Kinsey's and Master's & Johnson's that will help you design your own study? Explain how you would go about investigating your research study (e.g., describe type of research method used, your sample, ..
What is the taxable equivalent yield : f the yield on the bonds is 3.5 percent, what is the taxable equivalent yield?
Wireless security perimeter defenses matrix : Complete the attached Wireless Security Perimeter Defenses Matrix by discussing the wireless security topics in each of the rows as they relate to a security advisory that your learning team will present to the management group of XYZ Company. Iss..

Reviews

Write a Review

Econometrics Questions & Answers

  Calculate the monopolists profit

Suppose the demand curve for a monopolist is QD = 500 - P and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit-maximizing output and price..

  How many units will the consumer buy in total

How many units will the consumer buy in total?

  Are gold and silver substitutes or complements

One of their new MBA financial wizards has estimated the following relationship for gold sales in the past year of trading (250 observations): Q = 4,000 - 0.01P + 1.5I - 1.25X + 2.0S R2 = .96 (857) (0.002) (0.65) (0.44) (0.48) where Q = daily sale..

  What role does reputation have in maintaining incentives

What is required if firms are to have an incentive to maintain their reputations? How might the good reputation of existing firms serve as a barrier to the entry of new firms?

  Analyze whether the investment is desirable or not

For depreciation purpose a 700 salvage value at the end of 6 years is assumed. But the actual value is thought to be 1000 and it is the sum that is shown in the before tax cash flow. Year: 0, 1, 2,3,4,5,6

  How much must invest in year to earn

In order to have money available for replacing their family vehicle, a couple planned to have $220,000 available in 10 years by investing. If they plan to increase their savings by 10% each year, how much must they invest in year 1 if they expect ..

  What are the impact and long-run propensities

In an equation for annual data, suppose that: unempt  = 2.7 - .68 inft  - .25 inft-1 + .33 inft-2 + ut, where unempt is an unemployment rate at time t and inft is the inflation rate. What are the impact and long-run propensities

  What will be jeffs expected utility from the gamble

Jeff holds $50,000 wealth which has a utility of 7.07 utils (assuming utility is the square root of wealth in thousand dollars). He considers investing this in a gamble which has a 0.6 probability of increasing his total wealth to $100,000 and 0.4..

  How can your company profitably exploit this difference

How can your company profitably exploit this difference?

  How to use them to make appropriate economic decisions

As you are analyzing the data, apply econometrics methods (linear regression, statistical mathematics, nonlinear regression, or another relevant model) to validate data and determine strategies and solutions for the economic data retrieved. Data n..

  How much has the true cost of living increased for abby

Compare this answer to your answers to parts (a) and (d). What does this example tell you about Laspeyres and Paasche price indexes?

  What is the variance of one throw of the dice

your playing dungeon and dragons an old-school pen and paper role playing game. the game uses an 8 sided dice, with numbers 1-8 on each face. the probability of rolling each number is 1/8. let y equal the sum of values from two independent rolls, t..

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