A southwestern city that has 170,000 households is required to install treatment systems for the removal of arsenic from drinking water. The annual cost is projected to be $50 per household per year. Assume that one life will be saved every three years as a result of the arsenic removal system andthat the EPA values a human life at $4.8 million. Use a discount rate of 8% per year and assume the life is saved at the end of each three-year period.Utilize a conventional B/C ratio to determine if the project is economically justified.

Q: The Transportation Service Directorate of a Municipality wants to purchase a new software system to…

A: Capitalization cost means total cost incurred in the project or investment. Some part of the cost…

Q: A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed…

A: NPV is a capital budgeting technique used to find the acceptability and profitability of a project.…

Q: The Reliance Volunteer Fire Company wants to take advantage of a state program to save money to…

A: Present value is the current worth of an asset at which it is traded in the market. Future value is…

Q: A $4,875 processing machine purchased by FedEx to replace quarantined workers during the pandemic…

A: Net Present Value = Present value of cash inflows - Initial investment where, Present value of cash…

Q: an initial cost of $50,000,000.  The annual maintenance is $1,000,000 per year, each and every year…

A: in this we have to calculate present value of both approaches and select best among them.

Q: Chemical engineers at a Coleman Industries plant in the Midwest have determined that a small amount…

A: Initial Investment (P0)= $35,000 i=15% per year Growth rate (g)=12% per year A= $7000 per year

Q: A supermarket is planning on piloting a self- checkout system in one of its stores. It estimates…

A: Payback period is time required to generate the cashflow equal to initial investment .

Q: A municipality is planning on constructing a water treatment plant at an initial cost of…

A: Capital cost is the cost which is required to purchase an equipment. It also includes the repair…

Q: Because of tighter safety regulations, an improved air filtration system must be installed at a…

A: Present worth is the current value of cash flows that are expected to occur in the future.

Q: A highway department is considering building a temporary bridge to cut travel time during the three…

A:

Q: The landfill for Wellsburg has an area of 30 acres available for receiving waste from the city of…

A: At break-even, the total revenues are equal to the total costs. Also, Break even units = Fixed costs…

Q: A project of providing electric scooters in an area has an initial cost of $400,000. The e- scooter…

A: Cash flow diagram is pictorial representation of cash inflows and outflows of a project.

Q: A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is…

A: The question is related to Capital Budgeting. The details are given. Since the tax rate is not given…

Q: An environmental consultant is considering the installation of a water storage tank for a client.…

A: Present Worth analysis is the estimation of discounted value of future cash flows. It is used to…

Q: The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating…

A: Computation:

Q: A town in Wyoming wants to drill a geothermal well to provide district heating steam and hot water…

A: Here, Capital Investment is $342,000 Savings due to reduction in Gas consumption is $40,000 MARR is…

Q: Former Green Bay Packers defensive tackle, Don Davey, is considering opening a Firehouse Sub Shop in…

A: A discount rate at which the net present worth of an investment is equal to zero is term as an…

Q: After seeing its neighboring village obtain a new water tower, the city board of East Dubuque begins…

A: Time Period = 20 Years Interest rate = 9% compounded daily Future Value = $1,750,000

Q: A state government is considering construction of a flood control dike having a life span of 15…

A:

Q: A city has decided to build a sofiball complex, and the city council has already voted to fund the…

A: Computation: Assume the ticket price is ‘a’.

Q: The National Park Service is considering two plans for rejuvenating the forest and landscape of a…

A: The current worth method will take into usage of the Present value factors and the concept of Time…

Q: town of Arrieta has decided to have an sculptor create a statue of their town founder, Arrieta…

A: Present worth of all cost is considering the all cost and all maintenance cost and other all cost.

Q: A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is…

A: Cost of project = $ 84000 Annual benefit = $ 18000 Life = 6 Years MARR = 19%

Q: A manufacturing company has determined that it will need $700,000 in 6 years for a new roof on its…

A: Future Value: The value of any asset at a future date which is determined on the basis of an assumed…

Q: Riener Hospital has an x-ray machine with a book value of $60,000 and a remaining useful life of…

A: The difference between the revenue and expenses during the period is termed net income or loss. If…

Q: A city water and waste-water department has a four-year-old sludge pump that was initially purchased…

A: (a) Determining the economic life of the challenger Challenger   Year MV OM Cost PW EUAC 0…

Q: Green County is planning to construct a bridge across the south branch of Carey Creek to facilitate…

A: EUAC: It is a measure of equivalent annual cost in which total upfront cost is converted into the…

Q: Compute the NPV (at 10 percent cost of capital) and IRR to determine the financial feasibility of…

A: Internal Rate of Return: It is the rate at which the net present value of an investment becomes…

Q: The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: A plasma arc furnace has an internal combustion temperature of 7,000◦C andis being considered for…

A: The Payback period and IRR can be computed as follows:

Q: tate department of health is considering a public awareness campaign to encourage vaccination. It…

A: Solution Formula for benefit cost ratio =present value or the benefit / present value of cost…

Q: The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost…

A: Annually $200 is the cost of heat loss   The present value of Gradient, (PG) = (A/G, i%, n) =200…

Q: The owner of a ski resort is considering installing a new ski lift that will cost $900,000. Expenses…

A: Probability No. of days Prob.*Days 0.60 80 48 0.30 100 30 0.10 120 12…

Q: the city has just built an indoor soccer complex at a cost of 2,250,000 and considers it a…

A: The present value of the cash flow is the current worth of the stream of cash flows received or…

Q: Anderson County has 35 older-model school buses that will be salvaged for $5,000 each. These buses…

A: The Equivalent uniform annual cost is the cost of maintaining, purchasing and operating of assets…

Q: A local county government is considering purchasing some dump trucks for thetrash pickups. Each…

A: Time period is denoted by n, and interest rate is denoted by i, annual fee (AF) can be calculated as…

Q: Pollution control equipment must be purchased to remove the suspended organic material from liquid…

A: The future value is the future worth of the amount that has to be paid or received at future.

Q: Metropolitan Water Utility is planning to upgrade its SCADA system for controlling well pumps,…

A: Present worth is the present value of cash flows that are expected to occur in the future.

Q: Computer-Aided Machining Company plans to invest in a state- of-the-art 5-axis machining center with…

A: Computer Aided Machining Company's Invoice price of machining center = $450000 Freight = $25000 Site…

Q: In this problem, we consider replacing an existing electrical water heater with an array of solar…

A: IRR is that rate of return which makes the worth of future cash flows equal to the existing worth.

Q: The town of Covington is planning to build a pedestrian/bicycle bridge across a stream at a local…

A: Net Present Value: The net present value can be computed by discounting the present value of all…

Q: Set up the NPV equation for the CBA.

A: Net present value is the present value of all future cash flows and initial cost of the project…

Q: n 2016, the city of Abu Dhabi collected $24 million in fines from motorists because of traffic…

A: The rate of return is a ratio between net operating income and the initial cost of any project. It…

Q: A town in Wyoming wants to drill a geothermal well to provide district heating steam and hot water…

A: The IRR is the rate at which the discounted values of the costs and benefits are equal, that is, the…

Q: A Municipality needs a new fleet of busses. They have a choice between a diesel fuel powered fleet…

A: Net Present Value=Present value of inflows-Present value of outflows Annualized Net Present Value…

Q: what is the cost of the new animal shelter? Shuler Dog Care Co. wants to finance a new animal…

A: Interest rate = 6% Annual deposit for first 4 years = $24000 Annual deposit for next 4 years =…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.