Assume that, as a part of its economic development program, your governmental agency has committed to provide access to a new regional industrial park. This project must fund the construction of an on/off-interchange from an adjacent highway, a 2-mile length of 4-lane divided roadway, and a bridge that will cross a 500-foot wide river. The entire project is estimated to require 2 years to complete following planning & design.The roadway to be constructed is projected to cost $125,000 per lane mile. It will need to begin construction 12 months prior to the project’s estimated completion date. Your government controls the permitting process for the roadway and has already issued the necessary permits. The total roadway project will be paid for at its completion

Rare Agri-Products Ltd. is currently evaluating a potential new project that is expected to have a duration of seven (7) years. This project falls under the government's subsidy program aimed at promoting local agricultural products, making it eligible for a one-time rebate of 25% on the initial equipment investment. The cost of the initial equipment (IE) is estimated to be $41,000,000. Additionally, at the end of year 3, an additional equipment (AE) costing $3,500,000 will be required. It is worth noting that at the end of the seven (7) years, the original equipment (IE) will have no resale value, while the supplementary equipment (AE) can be sold for $50,000. Furthermore, a working capital of $1,350,000 will be necessary for the project. Sales projections for agri-products over the seven-year period are as follows: Year 1: 70,000 unitsYear 2: 100,000 unitsYears 3-5: 250,000 unitsYears 6-7: 325,000 unitsThe expected selling price per unit is $150 for the first two years, which will…

Rare Agri-Products Ltd. is considering a new project with a projected life  of seven  (7)years.  The  project  falls  under  the  government’s subsidy  program  for  encouraging  local  agricultural  products  and  is eligible  for  a  one-time  rebate  of  25%  on  any  initial  equipment installed  for  the  project.  The  initial  equipment  (IE)  will  cost $41,000,000. At the end of year 1, An additional equipment (AE) costing $3,500,000 will be needed at the end of year 3. At the end of seven (7)years, the original equipment, IE, will have no resale value but the supplementary equipment, AE, can be sold for $50,000. A working capital of $1,350,000 will be needed.The project is forecast to generate sales of agri-products over the seven years as follows:Year 170,000 unitsYear 2100,000 unitsYears 3-5250,000 unitsYears 6-7325,000 unitsA sale price of $150per unitfor the first two years is expected and then decline to $90 per unitthereafter as the newness of the product loses some…

(engineering economics) A building was purchased by the city government with a gradual payment of Rp. 20 billion at the time of purchase and followed by Rp. 40 billion a year later. The building is expected to be used by the community for 20 years starting after the second payment is made. During operation the dam will require operational and maintenance costs of Rp. 750 million annually. Meanwhile, the benefits that will be obtained by the community as a result of these facilities can be equivalent to Rp. 5 billion per year. In addition, this facility also generates direct income of Rp. 4.7 billion per year. Alternatively, the building can be renovated prior to use. If it is going to be renovated, the city government needs to spend an additional Rp. 10 billion for the two payments as mentioned above. The operational and maintenance costs have not changed, which are still Rp. 750 million per year, while the annual income will increase to Rp. 5.6 billion. Determine alternatives without…