Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 5 The city of Columbia is considering extending the runways of its municipal airport so that commercial jets can use the facility. The land
Question 5 The city of Columbia is considering extending the runways of its municipal airport so that commercial jets can use the facility. The land necessary for the runway extension is currently a farmland that can be purchased for $350,000. Construction costs for the runway extersion are projected to be $600,000, and the additional annual maintenance costs for the extension are estimated to be $22.500. If the runways are extended, a small terminal will be constructed at a cost of $250,000. The annual operating and maintenance costs for the terminal are estimated at $75,000. Finally, the projected increase in flights will require the addition of two air traffic controllers at an annual cost of $100,000. Annual benefits of the runway extension have been estimated as follows: $325,000 Rental receipts from airlines leasing space at the facility $65,000 Airport tax charged to passengers $50,000 Convenience benefit for residents of Columbia $50,000 Additional tourism dollars for Columbia T= 10 years Calculate: 125% a. The Conventional B-C Ratio for Present Worth b. The Modified B-C Ratio for Present Worth c. The Conventional B-C Ratio for Annual Worth d. The Modified B-C Ratio for Annual Worth Question 5 The city of Columbia is considering extending the runways of its municipal airport so that commercial jets can use the facility. The land necessary for the runway extension is currently a farmland that can be purchased for $350,000. Construction costs for the runway extersion are projected to be $600,000, and the additional annual maintenance costs for the extension are estimated to be $22.500. If the runways are extended, a small terminal will be constructed at a cost of $250,000. The annual operating and maintenance costs for the terminal are estimated at $75,000. Finally, the projected increase in flights will require the addition of two air traffic controllers at an annual cost of $100,000. Annual benefits of the runway extension have been estimated as follows: $325,000 Rental receipts from airlines leasing space at the facility $65,000 Airport tax charged to passengers $50,000 Convenience benefit for residents of Columbia $50,000 Additional tourism dollars for Columbia T= 10 years Calculate: 125% a. The Conventional B-C Ratio for Present Worth b. The Modified B-C Ratio for Present Worth c. The Conventional B-C Ratio for Annual Worth d. The Modified B-C Ratio for Annual Worth
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started