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Can anyone please help? I've found the other stuff but struggling on how to find the required increase in tax revenue. ive also added a
Can anyone please help? I've found the other stuff but struggling on how to find the required increase in tax revenue. ive also added a pic of the excel ive worked on for other questions.
Required informetion Use the following information to answer Problems 45 - 47 (Algo) [The following informotion opplies to the questions displayed below] Washington County's Board of Representatives is considering the construction of a ionger runway at the county ainport Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic fights. Data pertinent to the board's decision oppear below. In addition to the preceding data, two other facts are relevant to the decision. First, a longer ninway will require a hew snowplow, which will cost $112,000. The old showplow could be sold now for $10,600 the new, farger plow wilcost $13200 more in annual operating costs. Second, the County Board of Representat/ves belleves that the proposed long runway, and the major jet service it will bring to the county, wifincrease economis activity in the community. The board projects that the increased economic activity wil result in $76,240 per yeor in additional tox revenue for the county In onalyzing the funwoy proposol, the board has decided to use a to-year cme horizon The county/s hurdie rate for capito! projects is 12 percent. Use Agpendix A for your reference Note: Use appropriate foctor(s) from the tables provided. PR 16.47 (Algo) Internal Rate of Return; Sensitivity Analysis (Section 1) (LO 16-1, 16-3) In onalyzing the runwoy proposal, the board has decided to use o to-year time horzon. The county's hurdle rate for capiral projects is 12 percent The County Boord of Regresentotives believes that if the county conducts o promotionol effort costing \$21, 800 per yenc, the proposed long runway will result in substantiolly greater economic development thar was projected originally. However, the board is uncertain obout the actual increase in county tox revenue thot will result. Required: Suppose the board bulds the long runwoy and conducts the promotional compoign. What would the increase in the county's onnual tax revenue need 10 be in order for the proposed tumway's internal rote of return to equel the colany's hurdle rate of 12 percent? Note: Pound your intermediate colculotions and final answer to the nearest whole doline \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline outflow & Inflow 1 & inflow 2 & inflow 3 & etc & etc & etc & etc & etc & etc & etc \\ \hline509,960 & 76,000 & 76,000 & 76,000 & 76,000 & 76,000 & 76,000 & 76,000 & 76,000 & 76,000 & 76,000 \\ \hline & & & & & & & & & & \\ \hline & & & & & & & & & IRR & 8% \\ \hline & 0.892857 & 0.797194 & 0.71178 & 0.635518 & 0.567427 & 0.506631 & 0.452349 & 0,403883 & 0.36061 & 0.321973 \\ \hline & & & & & & & Annuity D & iscount Fac & ictor & 5.650223 \\ \hline \end{tabular} Step by Step Solution
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