What problems involving cost-benefit analysis

Assignment Help Financial Management
Reference no: EM131845191

What problems involving cost-benefit analysis appear in the following statements?

a. A public power project uses a discount rate of 8.5 percent, the after-tax rate of return for electric utilities in the area.

b. Evaluation of a new municipal fire station uses a discount rate equal to the rate at which the city can borrow long-term funds.

c. Evaluation of a new four-lane highway to replace an older two-lane highway shows saved travel time for truckers and for private vehicles, the value of increased gasoline sales, and increased profits of trucking firms.

d. A cost-benefit analysis of removal of architectural barriers for people with disabilities from commercial buildings produced the following benefit estimate for a 202,000-square-foot shopping center: economic benefit during fifty-year useful life of center (1975–2024) = $4,537,700, the cumulative gross revenues from leasable area. (This increase in gross revenue per year attributable to new accessibility to people with disabilities is calculated by multiplying gross revenues per year by the ratio of persons with disabilities to nondisabled people in the area. The estimate is based on gross revenue per leasable area experienced nationally in 1969, brought forward to 1975 by the rate of consumer price index increase, and extended through the fifty-year life of the building according to the compounded rate of growth in sales revenue experienced by community shopping centers, 1966–1969. A 7 percent discount rate is employed.)

e. A benefit-cost study done by the state Department of Environmental Management of an offshore wind power project calculates initial project cost at $811 million, but reduces that estimate by 15 percent to allow for the impact of government incentives expected to be adopted before the project actually starts construction.

f. Some studies of the Keystone Pipeline include the 5,000 to 6,000 construction jobs as a benefit of the project.

Reference no: EM131845191

Questions Cloud

Cyber warfare had on international relations : What impact has cyber warfare had on international relations?
How successful has Dienst been in turning around MSLO : During the ten years previous to Dienst, six different people served as CEO of MSLO. Other senior executives have departed also, often because they clashed.
Describe the group with a few adjectives and identify why : Describe the group with a few adjectives and identify why that group/individual is a stakeholder, and say what that stakeholder is owed.
List some different historical perspectives : List some different historical perspectives on the relationship between culture and oppression in general? How has the relationship between culture.
What problems involving cost-benefit analysis : What problems involving cost-benefit analysis appear in the following statements?
What similarities and differences did you find : What similarities and differences did you find? WHEN will you evaluate? WHY will you evaluate? WHOM will you evaluate? WHERE will you evaluate?
Conception and production of codes of ethics : Violence has historically played an important part in the conception and production of codes of ethics
Governments of different nations : Globalization deals with the interaction and integration of people, companies, and governments of different nations
Sequence or dependent relationships among activities : Using a project start time of 0 (or January, 1) and a required project completion time of 180 days (or June, 30), calculate the ES, EF, LS, and LF times.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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