Suppose that the City of Nairobi is planning a bid to host the 2032 Olympics and Kas estimated the following benefits: The estimat benefits at the end of year 1 (a,) are $300 million, at the end of year 2 (B.) are $200 million, and at the end of year 3 (s,) only $100 million (after the third year there are no further benefits). If the estimated interest rate is 4% (r0.04) then using the estimated value of benefits equation below, calculate the maximum value (and therefore, the maximum amount that Nairobi should bid) for the 2032 Olympics. B, V (1+ (1+) (1+r)

Suppose that the City of Nairobi is planning a bid to host the 2032 Olympics and Kas estimated the following benefits: The estimat benefits at the end of year 1 (a,) are $300 million, at the end of year 2 (B.) are $200 million, and at the end of year 3 (s,) only $100 million (after the third year there are no further benefits). If the estimated interest rate is 4% (r0.04) then using the estimated value of benefits equation below, calculate the maximum value (and therefore, the maximum amount that Nairobi should bid) for the 2032 Olympics. B, V (1+ (1+) (1+r)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Find the present value of a loan on December 4, 2010 if the maturity value on October 4, 2011 is PHP 420,000. The applicable rate is 9% discount interest.
With a nominal interest rate of 10%, the present discounted value of R200 to be received in one year is
The maximum amount an individual can contribute to her Registered Retirement Savings Plan (RRSP) for a year is set from time to time by the Regulations of the Income Tax Act. For the year 2020, the maximum contribution is the lesser of $27,230 or 18% of the individual’s “earned income” during 2019. What is the maximum RRSP amount that can be contributed in 2020 based on an income of $128,500 in 2019?
If 2021Q4 Interest Income from the Loan Portfolio is $10MM, the EOP Balance of Loans is $600MM, and the Avg. Balance of Loans is $700MM, the Yield on Loans is:
Suppose $100 is invested today in a project that returns $330 in 6 years. Calculate the IRR of this investment.
For services rendered, an attorney accepts a 90-day note for $4,400 at 9% simple interest from a client. (Both interest and principal are repaid at the end of 90 days.) Wishing to use her money sooner, the attorney sells the note to a third party for $4,450 after 60 days. What annual interest rate will the third party receive for the investment? The third party will receive an annual interest rate of %???? (Type an integer or decimal rounded to two decimal places as needed.) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A sum of money “x” pesos will be received six years from now. At 5% annual interest the present worth now of “x” is P60, 000. At the same rate of interest, what would be the value of “x” 10 years from now? a.P97, 733.68 b.P87, 733.68 c.P97, 783.68 d.P97, 763.68
Current maintenance cost of a certain machine is P1,200 and increases by 250 each year for the next 10 years. If interest is 8% what present sum of money is necessary to be set aside now to pay for the maintenance cost for the next 10 years. a. P14,546.306 b. P16,546.306 c. P15,446.306 d. P14,456.306
In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30days or P270 at the end of 120days. At what rate is the buyer paying simple interest if he agree to pay at the end of 120days?
An investor invests the following amounts of money in a bank account: R18,850 on 1 September 2019 , R15,575 on 31 May 2021 and R19,465 on 1 February 2023. From 1 October 2021 up to 30 April 2023 an amount of R980 is invested at the start of every month. From 1 July 2020 up to 31 March 2022 an amount of RX is invested at the end of each quarter. On 1 January 2019 the total present value of all the investments is R75,998.34. If the interest rate is 8.75% per year, calculate the value of X (annuity invested every quarter)
1. What is the annual rate of interest if P300 is earned in four months in an investment of P15350?
A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If the annual couponpayment is $75, what is the accrued interest? (Assume 182 days in the 6-month period.)