Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ignore question 7 please answer question 4 the numbers submitted are said to be incorrect Question 7 0.5 pts A tax exempt municipality is considering

image text in transcribed
image text in transcribed
ignore question 7 please answer question 4 the numbers submitted are said to be incorrect
image text in transcribed
Question 7 0.5 pts A tax exempt municipality is considering the construction of a new municipal waste water treatment facility. Two different sites have been selected as technically, politically socially, and financially feasible. The city Council uses 6% interest rate for all analyses for public projects. The expected cash flow for the two alternatives are as follow Year Alt. A Alt. B $17195171 $28513273 1 - $1952754/year $3044909/year 75 What is the incremental benefit/cost ratio? Enter your answer as follow: 12.34 A tax exempt municipality is consider ing the construction of a new municipal waste water treatment facility. Two different sites have been selected as technically, politically, socially, and financially feasible. The city council uses 6% interest rate for all analyses for public projects. The expected cash flow for the two alternatives are as follow: Alt. B Year Alt. A $28513273 $17195171 1- $1952754/year $3044909/year 75 What is the incremental benefit/cost ratio? Enter your answer as follow: 12.34 Question 4 The MARR is 15%. Three alternatives are available and the associated cash flow is as follow: C A Year $3,750 $2,100 $1,700 First Cost $1,000 $1,000 $1,000 Annual Benefit 6 3 Useful Life 2 Answer the following in this format: 1.23 1. The payback pericd for Alternative A is 1.70 2. The payback period for Alternative B is 2.10 3. The payback pericd for Alternative C is 3.75 Based on Payback period analysis, Alternative A should be selected.(Enter only the letter)

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

Investments

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian

9th Canadian Edition

1259271935, 9781259271939

More Books

Students also viewed these Finance questions

Question

Have the group had any input to their goal?

Answered: 1 week ago

Question

What is the best conclusion for Xbar Chart? UCL A X B C B A LCL

Answered: 1 week ago