Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please this my third time posting this single question. the question is asking for required increase in tax revenue in$..... Please show all working? Washington

image text in transcribed

image text in transcribed

Please this my third time posting this single question. the question is asking for required increase in tax revenue in$..... Please show all working?

Washington County's Board of Representatives is considering the construction of a longer runway at the county airport. 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 flights. Data pertinent to the board's decision appear below. Cost of acquiring additional land for runway Cost of runway construction Cost of extending perimeter fence Cost of runway lights Annual cost of maintaining new runway Annual incremental revenue from landing fees $ 64,588 288,888 24,535 33,8ea 16,5e8 27,5e8 In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $120,000. The old snowplow could be sold now for $12,000. The new, larger plow will cost $8,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $80,000 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county's Pre 7l Scare answer > 5 of 7

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

Study On The Auditing System Of Socialism With Chinese Characteristics

Authors: Jiayi Liu

1st Edition

111932470X, 978-1119324706

More Books

Students also viewed these Accounting questions

Question

1. Explain how business strategy affects HR strategy.

Answered: 1 week ago