Consider the following investment opportunity: Initial cost $100,000 Additional cost at end of Year 1 150,000 Benefit
Question:
Consider the following investment opportunity:
Initial cost $100,000
Additional cost at end of Year 1 150,000
Benefit at end of Year 1 0
Annual benefit per year at end 20,000
Of Years 2-10
With interest at 7%, what is the benefit-cost ratio for this project?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 73% (19 reviews)
Benefit Cost Ratio PW of ...View the full answer
Answered By
Allan Olal
I have vast tutoring experience of more than 8 years and my primary objective as a tutor is to ensure that a student achieves their academic goals.
4.70+
78+ Reviews
412+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Consider the following investment opportunity. Initial cost at time 0 .................................................... $15 million Annual revenues beginning at time 1...
-
Consider the following investment cash flows over a two-year life: (a) Compute the mean and variance of PW of this project at i = 10% if 1. A1 and A2 are mutually independent. 2. A1 and A2 are...
-
Consider the following investment cash flows over a threeyear life: (a) If all cash flows are mutually independent, compute E(NPW) and Var(NPW) at i = 10%. (b) If all annual cash flows are normally...
-
Pat has become concerned about the profitability and cash needs for the business as it grows. You have been asked to prepare some budgets for the second quarter of 2020: the three months of April,...
-
To get an A in a course, you must have an average of at least 90% on four tests worth 100 points each. Your scores so far are 87, 92, and 84. What must you score on the fourth test to get an A in the...
-
The balance sheet debit column of the worksheet for Shaw Company includes the following accounts: Accounts Receivable $12,500; Prepaid Insurance $3,600; Cash $4,100; Supplies $5,200 and Short-term...
-
Mailmax Direct is incorporated in the state of Arizona. The charter authorizes Mailmax to issue 1,000 shares of \(6 \%, \$ 100\) par preferred stock and 250,000 shares of \$10-par common stock. In...
-
In 1999, Stephen and Linda Kailin bought the Monona Center, a mall in Madison, Wisconsin, from Perry Armstrong for $760,000. The contract provided, Seller represents to Buyer that as of the date of...
-
The table below lists the prices from last year and the base year for a college- related basket of goods. Assume that the typical basket of goods for a college student consists of 190 gallons of gas,...
-
Suppose a family with only one child earns $50,000 per year and live in a community without publicly provided education. a. Draw the familys budget constraint showing the tradeoff between quantity of...
-
Think about a major government construction project under way in your state, city, or region. Are the decision makers who originally analyzed and initiated the project currently in office? How can...
-
A government agency has estimated that a flood control project has costs and benefits that are parabolic, according to the equation (Present worth of benefits)2 - 22(Present worth of cost) + 44 = 0...
-
With the exception of the shaded squares in the first row and first column, every square in the table above is to be filled in with a number equal to the sum of the number directly above it and the...
-
a. (f+g)(0) b. (g-)(2) c. (g.)(-1) d. e. (fog)(4) f. (8 5)(0) g. 8(f(4)) the graphs of two functions are shown. Evaluate the function at the given values of x, if possible.
-
Consider the assessment plan your team is developing. Using that information, what recommendations would you make to the stakeholders regarding how to use the data to inform future decisions...
-
Finding a desirable job often involves intense moments of uncertainty, doubt and uncomfortableness. Occasionally, great jobs just land in people's laps, but usually there is quite a bit of unseen...
-
Educators should be familiar with the materials used within the classroom to provide students with scientific learning opportunities. Often, the teacher needs supplemental materials to provide rich,...
-
g) Draw a graph that displays the expected profit/loss of your hedged position (i.e. your combined spot and futures position, based on the hedging strategy you recommended in question e (using...
-
For each of the ethical situations listed below, indicate (1) whether or not a rule of profes- sional conduct has been violated and (2) which rule has been violated (if your answer to (1), above, is...
-
A woman at a point A on the shore of a circular lake with radius 2 mi wants to arrive at the point C diametrically opposite on the other side of the lake in the shortest possible A time. She can walk...
-
In 2006, the Melbourne entrepreneur James Tutton, founder of the Moonlight Cinema Group, began to recognise his own childrens stress as they prepared for their NAPLAN tests. In response he developed...
-
The city of El Paso gave the El Paso Tennis and Swim Club a 20-year lease to continue using a 10-acre arroyo park for its facilities. The club will pay $1000 per year plus make $350,000 in...
-
Stadium Capital Financing Group is a Chicago company that conceived the so-called sports mortgage wherein fans agree to pay a relatively large amount of money over a 10- to 30-year period for the...
-
The expansion plans of Acme Granite, Stone & Brick call for the company to add capacity for a new product in 5 years. The company wants to have $360,000 available before it announces the product. If...
-
Consider one disk with 2000 cylinders, numbered 0 to 1 999. Assume the current position of head is at cylinder 500. The request queue is given as follows: 103, 80, 1400, 813, 1714, 748, 1500, 1100...
-
Convert the following numbers (Show the steps of your work): a. Ox23734 Binary: Decimal: b. Ob01100011 Hex: Decimal: c. 12345 Hex: Binary:
-
Find the total number of compounding periods and the interest rate per period for the investment. Nominal Term of Investment Interest (Annual) Rate (%) Compounded Compounding Periods Rate per Period...
Study smarter with the SolutionInn App