Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help to solve the question If an alternative has a salvage value, how is it han- dled in the calculation of a B/C ratio relative

help to solve the question

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
If an alternative has a salvage value, how is it han- dled in the calculation of a B/C ratio relative to benefits, disbenefits, costs, or savings? The cost of grading and spreading gravel on a short rural road is expected to be $300,000. The road will have to be maintained at a cost of $25,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be reached with off-road vehicles. The improved accessibility has led to a 150% increase in the property values along the road. If the previ- ous market value of a property was $900,000, calculate the B/C ratio using an interest rate of 6% per year and a 20-year study period. Arsenic enters drinking water supplies from natu- ral deposits in the earth or from agricultural and industrial practices. Since it has been linked to cancer of the bladder, kidney, and other internal organs, the EPA has lowered the arsenic standard for drinking water from 0.050 parts per million to 0.010 parts per million (10 parts per billion). The annual cost to public water utilities to meet the new standard is estimated to be $200 per house- hold. If it is estimated that there are 90 million households in the United States and that the lower standard can save 50 lives per year valued at $4,000,000 per life, what is the benefit/cost ratio of the regulation?Consider the data in Exercise 1.5 on page 13. Compute the sample variance and the sample standard deviation for both control and treatment groups. Reference Exercise 1.5: Twenty adult males between the ages of 30 and 40 participated in a study to evaluate the effect of a specific health regimen involving diet and exercise on the blood cholesterol. Ten were randomly selected to be a control group, and ten others were assigned to take part in the regimen as the treatment group for a period of 6 months. The following data show the reduction in cholesterol experienced for the time period for the 20 subjects: Control group: 7 3 -4 14 2 522 -7 95 Treatment group: -6 5 9 4 4 12 37 5 3 3 (a) Do a dot plot of the data for both groups on the same graph. (b) Compute the mean, median, and 10% trimmed mean for both groups. (c) Explain why the difference in means suggests one conclusion about the effect of the regimen, while the difference in medians or trimmed means suggests a different conclusion.Determine the debt-to-equity mix when Applied Technology bought out Southwest Semiconductor using financing as follows: $12 million from mort- gages, $5 million from retained earnings, $10 mil- lion from cash on hand, and $20 million from bonds. Business and engineering seniors are comparing methods of financing their college education dur- ing their senior year. The business student has $30,000 in student loans that come due at gradu- ation. Interest is an effective 4% per year. The engineering senior owes $50,000, 50% from his parents with no interest due and 50% from a credit union loan. This latter amount is also due at graduation with an effective rate of 7% per year. (a) What is the D-E mix for each student? (b) If their grandparents pay the loans in full at graduation, what are the amounts on the checks they write for each graduate? (c) When grandparents pay the full amount at graduation, what percent of the principal does the interest represent?For the density function of Exercise 3.17, find F(x). Use it to evaluate P(2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Algebra and Trigonometry

Authors: Ron Larson

10th edition

9781337514255, 1337271179, 133751425X, 978-1337271172

More Books

Students also viewed these Mathematics questions