Conventional benefit-cost ratio method

Assignment Help Microeconomics
Reference no: EM131058595

The High ridge Water District needs an additional supply of water from Steep Creek. The engineer has selected two plans for comparison: Gravity plan: Divert water at a point 10 miles up Steep Creek and carry it through a pipeline by gravity to the district. Pumping plan: Divert water at a point near the district and pump it through 2 miles of pipeline to the district. The pumping plant can be built in two stages, with half-capacity installed initially and the other half 10 years later. Use a 4O-year analysis period and 8% interest.

Salvage values can be ignored. During the first 10 years, the average use of water will be less than during the remaining 30 years. Use the conventional benefit-cost ratio method to select the more economical plan.

Reference no: EM131058595

Questions Cloud

What is the price of the common stock : Stagnant Iron and Steel currently pays a $6.45 annual cash dividend (D0). They plan to maintain the dividend at this level for the foreseeable future as no future growth is anticipated. If the required rate of return by common stockholders (Ke) is 21..
Compute current price of bonds if percent yield to maturity : Exodus Limousine Company has $1,000 par value bonds outstanding at 13 percent interest. The bonds will mature in 50 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calcula..
What would be the average retail price of the soap in china : Given the various modes of international market entry, which mode would be most appropriate for this company? Elaborate.
Three character strengths and three character weaknesses : Three different assignments! First assignement is the link attached. Second assignment is the 5 page autobiography. Third assignement is three character strengths and three character weaknesses
Conventional benefit-cost ratio method : Salvage values can be ignored. During the first 10 years, the average use of water will be less than during the remaining 30 years. Use the conventional benefit-cost ratio method to select the more economical plan.
Compare the pre- and post repurchase earnings per share : Stock repurchase The following financial data on the Bond Recording Company are available: Calculate the EPS after the repurchase. Explain your calculations. If the stock still sells at 10 times earnings, what will the market price be after the repur..
Calculating future values-additional contributions : Calculating Future Values [ L01 ] You have just made your first $5,000 contribution to your retirement account. Assuming you earn a return of 10 percent per year and make no additional contributions, what will your account be worth when you retire in..
Jon average power output during the lift : Only 0.50 s elapsed from the first movement of the barbell until it was overhead, and the barbell moved through a vertical displacement of 2.0 m. What was Jon's average power output during the lift?
What approaches can an entrepreneur take to reduce risks : Financial management of fast growth is one of the greatest challenges for entrepreneurial companies. What approaches can an entrepreneur take to reduce risks associated with financing growth

Reviews

Write a Review

Microeconomics Questions & Answers

  Presentation that information about healthy dining program

Explain in your presentation that information about the Healthy Dining program can be found. This page is primarily for diners.

  Calculate average surplus or deficit and average cyclically

The budget deficit or surplus is called "Deficit or Surplus with Automatic Stabilizers" and the cyclically adjusted deficit or surplus is called "Deficit or Surplus without Automatic Stabilizers." Briefly explain why the CBO uses these labels.

  Examine how involuntary conversions vary from condemnations

under the authority of the irs real property can be seized for nonpayment of taxes. in addition the local government

  Why does a business need to understand elasticity of demand

Why does a business need to understand elasticity of demand and calculate the elasticity of demand between prices $6 to $8

  Derive bert demand schedule

a. From this information, derive Bert's demand schedule. Graph his demand curve for bottled water.

  Explain what did coase consider to be the efficient solution

Ronald Coase points out that a market failure does not arise simply because people ignore the external cost of their action. What other condition is necessary What did Coase consider to be the efficient solution to a negative externality

  1explain why in a perfectly competitive market the firm is

1explain why in a perfectly competitive market the firm is a price taker. why cant the firm choose the price at which

  Presume that the market demand for cell phone service

Presume that the market demand for cell phone service is given by the following equation: Qd = 471 - 2P where Qd is the quantity of lines per month that people in the local area would be willing to purchase at a monthly price of P dollars. What is th..

  Laxland and workland are two identical countries

Laxland and Workland are two identical countries except that people in Workland work twice as hard of those in Laxland. Under all the usual HO assumptions what would be your prediction of the patterns of trade between these two countries?

  Why would changing investors expectations that fed would

at the same meeting of the open market committee where it announced quantitative easing 3 the fed chose to also

  What percentage nonetheless did order city of bones

What percentage nonetheless did order City of Bones - What do you think of George's policy - Who has the higher average salaries, men or women?

  Advertising between competition and oligopoly

Consider some of products which are widely advertised on television. By what type of firm is each produced the perfectly competitive firm, an oligopolistic firm, or another kind of firm? How many major products can you think of that are not advert..

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