Dunkin City wants to build a new bypass between two major roads that will cut travel time for commuters. The road will cost $16,000,000 and save 17,500 people $100/year on gas. The road will need to be resurfaced every year at a cost of $10,000. The road is to be used for 20 years. Use B/C analysis to determine whether Dunkin City should build the road. The cost of money is 8%.

Q: Mr. Daniel also ask you to evaluate the potential of developing several hundred stores into new…

A: Since question involves multiple sub parts , We will answer 1st sub 3 parts for you as per…

Q: Horizon Wireless must rebuild a cell tower. A tower made of normal steel (NS) will cost $30,000 to…

A: Given information is: Horizon Wireless must rebuild a cell tower. A tower made of normal steel (NS)…

Q: A project is being considered by the Tennessee Department of Transportation to replace an aging…

A: The computation is done below:

Q: The city of Oceanside has a new water treatment plant. The plant was purchased for $864,360. It has…

A: benefit-cost ratio: A benefit-cost ratio (BCR) is a financial or monitory measure that shows the…

Q: Kaufman Chemical is evaluating the purchase of a new multi-stage centrifugal compressor for its…

A: Before investing in new assets, profitability is evaluated by using various methods like NPV, IRR,…

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

A:

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

A: Internal Rate of Return: The rate that makes the NPV equal to zero, is called the Internal rate of…

Q: The theme park in Florida that is considering two designs for a new ride called the Scream Machine.…

A: The internal rate of return (IRR) is one of the capital budgeting techniques used for checking the…

Q: A city engineer must choose between two different routes for a new sewer line. Route 1 is a…

A: first cost ($) = Digging cost + Non digging cost. (250x 8,000) + (80 x 12,000) 2,000,000+ 960,000 =…

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: 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 Hawaii Department of Transportation has planned a bypass loop that is expected to cost…

A: The formula to compute conventional B/C ratio: B/C ratio=B-DCB=Present/future/annual worth of…

Q: A highway bridge is being considered for replacement. The new bridge would cost $X and would last…

A: The maximum acceptable price would be the cost of existing bridge and also the benefit from the new…

Q: If you are a city engineer and you know that you will need $25 million in 3 years to' replace toll…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: In building a highway, the district engineer is faced with the alternatives of building a four-lane…

A: Building 4 lane underpass   Rate Discount rate 5% Nper Number of years 40 Pmt Annual…

Q: A group of developers is opening a health club near a new housing development. The health club-which…

A: Given, Annual fixed cost = $875,000 Annual Variable cost = $200 per member

Q: Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South Park to…

A: Cash Flows: Cash flows are the cash generated from the operation of the business organization. In…

Q: The city of New Haven is trying to determine how big its capital budget needs to be to pay for the…

A: Initial cost (C) = $3.5 million Maintenance cost (M) = $330000 every 7 years r = 8%

Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…

A: Here, Cost of Route is $15 million Cost Savings is 17500 people $100 per year Cost Expense is $7500…

Q: A city is spending $20.3 million on a new sewage system. the expected life of the system is 50…

A: We can calculate the capitalized cost by using the data provided in the question. We can see that…

Q: A southwestern city that has 170,000 households is required to install treatment systems for the…

A: Benefit cost ratio one of the ratios which is used in capital budgeting. It is believed that if B/C…

Q: n order to provide drinking water, a west coast city is considering constructing a mporting water…

A: Present worth is the present value of all cost that are necessary over the life of equipment. The…

Q: The government is considering building more parking spaces at a popular beach so that more people…

A: Net present value is  the value in the present of a total of money, in contrast to some future value…

Q: The general city population is set to benefit in travel-time savings from a municipal road project…

A: in this we have to calculate net annual savings and net annual cost both must be equal to break…

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: ou are working on a bid to build 4 city parks a year for the next three years. This project requires…

A: Since there are several parts to the question, as per our guidelines, we will answer the first…

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: Cornell has two options for upgrading their athletic facilities. The offcampus option costs only…

A: Benefit-cost ratio analysis is a quantitative approach that helps in determining a relationship…

Q: The city of New Haven is trying to determine how big its capital budget needs to be to pay for the…

A: Initial cost (C) = $5 million Maintenance cost every 3 years (M) = $490000 r = 6%

Q: Calculate the B/C ratio using an interest rate of 6% per year and a 20-year study period

A: The Benefit / Cost ratio (B/C ratio) is calculated as follows: B/C = PW of benefitsPW of costs= AW…

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: An electric utility is considering a new power plant in northern Arizona. Power from the plant would…

A: Capital budgeting refers to the decisions while making the decisions for long term investments,…

Q: Jonhson Products is considering purchasing a new milling machine that costs $100,000. The machine’s…

A: New machinery cost = $100,000 Installation and shipping costs = $2,500 Initial working capital…

Q: The city of Atlanta is considering adding new buses for its current mass-transit system that links…

A: Concept: The Equivalent annual cost is defined as the cost per year based of owning and operating…

Q: nthony’s College is considering the replacement analysis of a concrete mixer. The old mixer has…

A: The capital budgeting process that determines whether current assets need to be replaced or not is…

Q: A project is being considered by the Tennessee Department of Transportation to replace an aging…

A: Benefit-Cost ratio is used to measure profitability of investment proposal. It is computed by…

Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…

A: Here, Cost of Route is $15 million Cost Saving is 17,500 people $100 per year Yearly Expense is…

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: Officials from the City of Galveston and State of Texas gathered to celebrate the start of a beach…

A: Excel Spreadsheet: Excel Workings:

Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…

A: You have posted a Multiple-part question, so as per our policy only the first three sub-parts are…

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.