Part II. Good CitizenWith all the money you made from your Hacking business, you decide to give back to your communityby paying for a communal park. As a fan of irony, you believe when people go outside they shouldn't beon their phones or the internet. As such, you install electronic jamming devices to block cell phone andwifi signals. For the community project, you evaluate at 1.478% per 6 months compounded weekly andprefer a standard cost-benefit model.11. An architect and an economist provide you the following table of options for the park [units $K].Which do you choose?Palpatine recreationalfacilityAB301826161311FIRST COST202520252025LIFE3.62.11.84AOC6.54.57.5Comm BENEFIT per year1215131410Size (acres)00 12. To buy the electronic equipment and install the jammers, you can either use money in yourmetals exchange investment account, which generally makes you 10% or you can choose to splitit among the options below. Which is best (split it or metals investment?$3M in stock sales at 15% per year$4M in loans at 9%$6M in retained earnings at 7%13. You choose that because the weighted average cost of capital for the split is[units %]

Answer:12 $3M in stock sales at 15% per year A option is the correct option

12. To buy the electronic equipment and install the jammers, you can either use money metals exchange investment account, which generally makes you 10% or you can choose to split it among the options below. Which is best (split it or metals investment? in your $3M in stock sales at 15% per year $4M in loans at 9% $6M in retained earnings at 7%

12. To buy the electronic equipment and install the jammers, you can either use money metals exchange investment account, which generally makes you 10% or you can choose to split it among the options below. Which is best (split it or metals investment? in your $3M in stock sales at 15% per year $4M in loans at 9% $6M in retained earnings at 7%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Due to the high crime rate in the city center, the state council in partnership with the police has installed CCTV in several “hotspot” areas. The installation of the CCTV cost USD1000000. The cost of CCTV maintenance in the first year is USD500,000, USD700000 in the second year, USD950000 in the third year, USD990000 in the fourth year and costs are realized at the end of each year. On the other hand, the installation of CCTV will help to reduce crime in that area and is predicted to bring about a benefit of USD2000000 for the first and second year and a benefit of USD 3000000 for the third and fourth year. At the end of the fourth year, the CCTV will be replaced by a new one and it can be resold as second hand for USD200000. Assume the discount rate of 3% is used. Calculate also Year 0 a). Calculate the present value of net benefits assuming the benefits are realized at the end of each of the four years. Also, draw the timeline of benefits and costs. b) Calculate the present value of…
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