What will be the rate of return over a three-year period

Assignment Help Finance Basics
Reference no: EM13881778

In 2010, the city of Houston, Texas, collected $24,112,054 in fi nes from motorists because of traffi c violations caught by red-light cameras. The cost of operating the system was $8,432,372. The net profit, that is, profit after operating costs, is split equally (that is, 50% each) between the city and the operator of the camera system. What will be the rate of return over a 3-year period to the contractor that paid for, installed, and operates the system, if its initial cost was $9,000,000 and the profit for each of the 3 years is the same as it was in 2010?

Reference no: EM13881778

Questions Cloud

Describe the responsibilities of the aircraft rescue fire : Describe the responsibilities of the Aircraft Rescue Fire Fighting personnel and the tactical methods and equipment requirements for ARFF units in the above scenario.
Discuss the arguments made by larry flynt : Discuss the arguments made by Larry Flynt In response to Jerry Falwell's suit stemming from the "Campari" ad. A radio station is fined by the FCC because of a finding that the station allowed an indecent word to be uttered by one during a live on-a..
Polypropylene production plant : The Cookenwythe Gas Company pumps propane gas to the nearby Noxious Chemicals, Inc., polypropylene production plant. The gas is metered at the noxious plant at 400m3/h at 4.7atm gauge and 30°C.
Is it statistically different from the period : Holding the job vacancy rate constant, what is the average unemploy- ment rate in the period beginning in the fourth quarter of 1966? Is it statistically different from the period before 1966 fourth quarter? How do you know?
What will be the rate of return over a three-year period : What will be the rate of return over a 3-year period to the contractor that paid for, installed, and operates the system, if its initial cost was $9,000,000 and the profit for each of the 3 years is the same as it was in 2010?
Procedure to prevent recurrence of an incident : The chemical reactor shown below has a cover (called a head) that is held in place by a series of bolts. The head is made of stainless steel (SG = 8.0), is 3 in. thick, has a diameter of 24 in., and covers and seals an opening 20in. in diameter.
Demand for the particular good rose : It is often said that the prospect of EU membership made central European nations a better, safer place to invest. Using the Solow diagram, show how this would affect medium term growth in these nations. What sort of ‘footprints’ would this leave in ..
The depreciation on the equipment : 1.On January 2, 2013, the Jackson Company purchased equipment to be used in its manufacturing process.
Read through the tree trimming project case : Read through the Tree Trimming Project case in chapter 13 of the textbook. This case refers to the earned value (EV) of the owner, Will Fence's Tree Trimming business. Will briefly describes his techniques for EV. Based on the description provided in..

Reviews

Write a Review

Finance Basics Questions & Answers

  Constructing three kinds of housing complexes

Emaar is a real estate company based in Dubai and is considering for constructing three kinds of housing complexes. The three kinds of complexes are: small complex, medium complex and large complex.

  Which of the following statements is most likely to be true

Suppose a firm relies exclusively on the payback method when making capital budgeting decisions, and it sets a 4-year payback regardless of economic conditions. Other things held constant, which of the following statements is most likely to be tru..

  Which of the following is not an example of a source

which of the following is not an example of a source document?a. purchase invoice.b. chart of accounts.c. cash register

  How much money will he have saved at the end of year 3

Tom is planning to invest the following amount at 4percent interest. how much money will he have saved at the end of year 3?

  What is the closest number to the required rate of return

If the dividend growth rate is expected to remain constant at the current level, what is the closest number to the required rate of return on this stock?

  What is its inception evolution purpose and

what is its inception evolution purpose and responsibilities? then dedicate the last 300 words of this essay to whether

  Computation of contract investment realization

Computation of Contract Investment realization and definition of the term hedging and You hold the option until the expiration date when IBM stock

  Determine to the nearest percent the irr projects

Determine to the nearest percent the IRR of the following projects: a. An initial outlay of $10,000 resulting in a free cash flow of $2.000 at the end of year 1, $5,000 at the end of year 2, and $8,000 at the end of year 3.

  Find the fair value of the bond

Find the duration and modified duration of this bond. Examine whether the modified duration is fairly accurate in reflecting the bond's senstivity to a 1% change in interest rate.

  Find the approximately annual payments of the loan

You have been approved for a $80,000 loan toward the purchase of a new home at 15 percent interest. The mortgage is for thirty years.

  The wacc for a firm is 1975 percent you know that the firm

the wacc for a firm is 19.75 percent. you know that the firm is financed with 75 million of equity and 25 million of

  Calculate the value of the guarantee to the firm

A large firm received a loan guarantee from the government. Due to the guarantee, the firm can borrow $50 million for five years at 8% interest rate per year instead of 10% per year. Calculate the value of the guarantee to the firm.

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