Question
1- The state of Colorado is considering opening a new state park in the Rocky Mountains. Park development costs are estimated to be $22,180,179 ,
1- The state of Colorado is considering opening a new state park in the Rocky Mountains. Park development costs are estimated to be $22,180,179 , and operating expenses are estimated to be $2,348,122 per year. It is anticipated that 380,891 people per year will visit the park, and the park entry fee will be $3 per person. State economists have calculated a positive economic impact on the area to be $ 19 per person per visit due to lodging, food, souvenirs, and other factors. Assuming a 0.07 annual interest rate and a 60 year planning horizon, the benefit-Cost (B/C) ratio for this project is most nearly what?
2- Acme Holding Co is looking to purchase a machine for Subsidiary Acme Constructionthat costs$49,057. The machine has an expected useful life of 12 years and a salvage value of $18,831.The operation and maintenance costs are estimated to be $3,343 per year over the machine's life,and the bank's interest rate of 0.03 per year has been stated. What is the initial investment that Acme Holding must invest to cost the entirecost of owning the machine?.
3- An insurance company provided some relevant data on two claims centers (A and B). They wish to understand the productivity of each center. Consider the data provided:
Claim Center | claims processed | claim hours worked | claims avg.hourly wage |
A | 4,296 | 6,715 | 20 |
B | 3,309 | 7,551 | 13 |
Determine which insurance claim center is best in terms of claims per hours (A or B) and enter the productivity in claims per hour (enter to two decimal places)
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