What is the builder''s capitalized cost to const the plant

Assignment Help Econometrics
Reference no: EM13205430

A home builder must construct a sewage treatment plant and deposit sufficient money in a perpetual trust fund to pay the $5000 per year operating cost and to replace the treatment plant every 40 years. The plant will cost $150,000, and future replacement plants will also cost $150,000 each. If the trust fund earn 8% interest, what is the builder's capitalized cost to const the plant and future replacements, and to pay the operating costs?

Reference no: EM13205430

Questions Cloud

Find the amount invested in each of the two companies : Find the amount invested in each of the two companies and find the standard deviation of this portfolio's returns
Describe your process for factoring it completely : describe your process for factoring it completely. Be sure to use three or more sentences in your explanation. If the polynomial can be factored, then factor it showing your work.
Discuss how this information is useful to a business : Key sets of labor market information include the monthly employment and unemployment numbers. The Current Population Survey (CPS) produces employment and unemployment statistics for the United States. All adult respondents are classified as employ..
Find the position function describing the motion of object : An object has a constant acceleration of 42 ft per second squared, an initial velocity of 18 ft per second, v(0)= 18, and an initial position of 3 ft, s(0)=3. Find the position function describing the motion of the objec
What is the builder''s capitalized cost to const the plant : a sewage treatment plant and deposit sufficient money in a perpetual trust fund to pay the $5000 per year operating cost and to replace the treatment plant every 40 years. The plant will cost $150,000, and future replacement plants will also cost
Find and interpret the coefficient of correlation : Find and interpret the coefficient of correlation.
Find the height of the trapezoid : a trapezoid has an area of 80.75 sq. in., and its two bases are 7 and 12 inches long. find the height of the trapezoid.
What is the probability that a random sample : What is the probability that a random sample of n = 242 people from the general population will have a mean IQ score that is less than or equal to 87?
What to take into account when measuring standard of living : In "The Journal Of Economic Perspectives" published by the American Economic Association studied the concept of standard of living from 1800 to the present. They talk about health, birth rate, length of life, literacy, and politics.

Reviews

Write a Review

Econometrics Questions & Answers

  What was the level of government spending

In the second quarter of 2006, household income was $13,134 billion, consumption was $9,162 billion, investment was $3,340 billion, and net exports were -$777 billion. What was the level of government spending in the second quarter of 2006

  How much of each type of sugar will be purchased

It is common for supermarkets to carry both generic (store-label) and brand-name (producer-label) varieties of sugar and other products. Many consumers view these products as perfect substitutes, meaning that consumers are always willing to substi..

  Define negative relationshp between gross domestic product

Compute the discount factor 1/(1+r)^t for r=1, 5, or 10 perent interest rates and t=30 and 50 years. remember that 1 percent is .01. based on your computation, is teh choice of discount factor important for deciding whether to do somehtinga bout..

  What pricing strategy will yield the greatest revenue

The manufacture has determined that men value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple microwave at $80 and one with auto-defrost at $150. If there is an equal number of men and women, what pricing str..

  What monthly withdrawal can you make

open a retirement account at the local bank that pays 8%/yr/month. For the next 20 years, you will deposit $400/month into the account, with all deposits and withdrawals occuring at month's end. On the day of the last deposit, you will retire.

  What will the owner pay to heat the building

The proposed small offfice building in has 24,000 net square feet of area heated by a naturalgas furnace. The owner of the building wants to knowthe approximate cost of heating the structure fromOctober through March (six months).

  What is profit maximizing price

Market research at Apple Corporation has shown that the demand function for its new iPhone is as follows: QA = 3 - 0.02PA + 0.0002I + 0.01PS where QA is the quantity demanded (in thousands) of iPhones, PA is the price of an iPhone, I is consumer i..

  How to install enough capacity to produce

Firm A has developed a new product and must now decide whether to install enough capacity to produce either one or two units of the product. It expects production costs (including capacity building) to be C(q) = 8q + q2 and it estimates demand for..

  How to maintain monopoly over the production of electricity

You own a building that has 4 possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the building in each use is $2000; $3000; $4000; and $5000, respectively. You decide to open a hardware store. The opportunity cost..

  What is dealers annual rate of return on loan transactions

Assume that you are going to buy a car work $25,000. You will be able to make a down payment of $3,000. The remaining #22,000 will be financed by the dealer. The dealer computes your monthly payment to be $547.47 for 28 months of financing.

  What is the maximum amount one can withdraw in year one

I want to deposit $10,000 now and $15,000 at the end of five years in a bank that pays 15% interest compounded semiannually. I want to withdraw an amount every year for the first five years and to withdraw $500 more for the following four years.

  Plot the levels and first differences of lnrgdp

Plot the levels and first differences of lnrgdp and lnrstockval and briefly comment on the graphs and obtain and comment on the variance decompositions for 24 periods ahead based on the original ordering of the variables.

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