Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The City of Houston is considering the expansion of a highway (hypothetical exercise). The construction phase of the project lasts five years and no benefits are generated during construction. Benefits start after construction is completed and there is also a maintenance cost every year after construction ends. The cost and benefits of this construction project are summarized in the following table. All values are given in real terms (that is, have been corrected for inflation).
Item
Quantity
Price/Value
Period
Costs:
Asphalt
1 million bags
$75 per bag
First 5 years
Labor
1 million hours
Half at $20 per hour and half at $10 per hour
Maintenance
$5 million per year
Years 6 to 30
Benefits:
Driving Time Saved
500,000 hrs/per year
$19 per hour
Lives Saved
5 lives per year
$7 million per life
Use a spreadsheet to calculate and answer the following questions. Attach your spread sheet to show your work. All benefits and costs are realized at the end of each period. Therefore, the costs and benefits at period t=0 are zero. The first payments of the project occur at t=1. Consider 30 years when evaluating the project.
a) Assume a 5% real discount rate. What is the present discount value of the project? Should the project be done?
b) Now assume a 7% real discount rate. What would the present discounted value of the project be? Should the project still be approved under this discount rate?
How Farmer jones carrots and buys beets. His income eLasticity of demand for both carrots and beets is posotive.an increase in the price of carrots causes him to.
The state government collected all taxes due, but its tax revenues were equal to $40 million each year. What happened to the sales tax base between 2006 and 2007? What could account for this result?
Illustrate what did he know about costing to the chain store representative was overlooking. Be sure to describe or chart the shape of Morita's costing.
We want to consider elucidate how a change in the U.S. money supply affects interest rates. On all graphs label initial equilibrium point A.
Suppose that investment decline by 40 units to a level of 60. What will be the new level of equilibrium income.
Miller and Coors who together produce 85% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.
Suppose that in the year 2010 the number of births is temporarily high. Explain how does this baby boom affect the price of babysitting services in 2015 and2025.
How will the money supply be affected by this transaction ? what is the ultimate change in deposits, loans, and reserves in the banking system? Explain in detail.
Using the current specifications, a new road will cost $1.5M initially, need $120K in annual maintenance, and need to be resurfaced every 10 years for $1.1M. If the highway department's interest rate is 6%, which specification is preferred?
the quantity supplied of the Real GDP in the long run is $4.3 trillion. Evalute is the economy in short run equuilibrium. Will the price in long run equilibrium be greater than, of less than, or equal to 132.
The New York City rent stabilization law of 1969 established maximum rental rates for apartments in New York City
Elucidate the reasoning for your vote based on the four steps of risk assessment. Consider any relevant political, social, and economic aspects involved.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd