ty is considering a replacement for its police radio. The benefits and costs of the replacement are shown below. Purchase Cost: $7,200 Annual Savings: $1,500 Annual Costs: $300 Life: 15 years What is the replacement’s benefit-cost ratio if th
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A City is considering a replacement for its police radio. The benefits and costs of the replacement are shown below.
Purchase Cost: $7,200
Annual Savings: $1,500
Annual Costs: $300
Life: 15 years
What is the replacement’s benefit-cost ratio if the effective annual interest rate is 8%?
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- Elm City is considering a replacement for its police radio. The benefits and costs of the replacement are shown below. What is the replacement’s benefit-cost ratio if the effective annual interest rate is 8%? Purchase Cost: $7,000 Annual Savings: $1,500 Life: 15 years. a. 3.21 b. 1.83 c. 1.76 d. 1.34.A Municipality needs a new fleet of busses. They have a choice between a diesel fuel powered fleet and a natural gas powered fleet. The Diesel fuel fleet has an initial cost of $50,000,000. The annual maintenance is $1,000,000 per year, each and every year of the 10 years life expectancy of the fleet. In addition, there will be a carbon emissions tax that starts at $250,000 in year 2, and increases by $250,000 each and every year after that. At the end of the ten years the busses can be sold for $5,000,000. The Natural Gas fleet can be purchased for $60,000,000. The annual maintenance is $800,000 per year. There is no carbon tax on the However, there is a 65% chance of a $5,000,000 one time “Special Maintenance cost at year 7. Because of certain toxic parts on the bus engines, the municipality will have to pay $5,000,000 and the end of the bus life to dispose of them. Use the present value approach to determine which fleet is more cost effective. The cost of money is 6%The city of Oceanside has a new water treatment plant. The plant was purchased for $864,360. It has annual operating and maintenance costs of $52,416 that will increase by 9% per year. The plant provides an annual benefit of $183,429 per year which will decrease by 2% per year. It is anticipated the plant will have a 25-year life span. Using a MARR of 9%, what is the benefit-cost ratio of the project?
- The estimated present cost to start a proposed municipal government project is $5,500,000. The annual operation cost of the project is $70,000. The estimated benefits from this project to the public are $470,000 per year, and the estimated existing disbenefits are $100,000 per year. The project has an estimated life of 20 years. a) Calculate the modified B/C ratio at an interest rate of 6% per year, and determine if it is economically justified. b) Calculate the profitability index at an interest rate of 6% per year. 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.Officials from the City of Galveston and State of Texas gathered to celebrate the start of a beach restoration project that involves dumping sand and adding antierosion structures. The first cost of the project is $30 million with annual maintenance estimated at $340,000. If the restored/expanded beaches attract visitors who will spend $6.2 million per year, what is the conventional B/C ratio at the social discount rate of 8% per year? Assume the State wants to recover the investment in 20 years.A public company is trying to use a benefit–cost analysis to determine whether or not to move to a new location for the next 20 years. The costs have been determined to be $300,000 initially, with $6000 maintenance costs per year. What do the benefits have to be in order to justify the move if the interest rate is 10% per year? a. Equivalent uniform benefits must be >= $41,238 b. Equivalent uniform benefits must be <= $41,238. c. Equivalent uniform benefits must be <= $11,238. d. Equivalent uniform benefits must be >= $11,238
- Give typing answer with explanation and conclusion Suppose a city must replace aging water pipes in the city system that is expected to cost $50 million dollars. The new water pipes are expected to last for about 30 years. The city has an annual budget of about 225 million and is trying to decide whether to finance the pipe replacement out of the current revenues; or by borrowing the money by selling 30 year bonds with an interest rate of 5%; or by selling 15 year bonds with an interest rate of 2.5%. Outline the advantages and disadvantages of each financing method. Which would you recommend? Might there be any reason to combine methods?A city is spending $20.3 million on a new sewage system. the expected life of the system is 50 years. and it will have no market value at the end of its life. operatikg and maintance expenses for the system is average $0.5 million per year. If the citys MARR is %10 per year . what is the capitalized worth of the system? the study period is 100 years.After seeing its neighboring village obtain a new water tower, the city board of East Dubuque begins planning to replace its water towers. The board estimates that it will need $1,750,000 to build the new water towers in 20 years. At this time, the city board plans to assess its 2753 homeowners with a one-time flat fee surcharge and the n invest the money received in a CD paying 9% interest compounded daily(use n=360) for 20 years. a.) How much money will the board need to raise at this time to meet the city’s water tower needs at the end of 20 years? b.) Before applying the surcharge, the city board receives a federal grant of $100,000 toward the water tower investment. Taking this grant into account, how much should the surcharge be on each homeowner?
- Use Annual Worth method to calculate the benefit/cost ratio at i = 6% for a new library. The first cost is $500K, and O&M costs are $100K per year. There is no salvage value after 30 years. Community benefits are estimated to be $130K per year. Is the library economically justified? Write a brief interpretation of your answerThe city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The appropriate financial data are as follows (shown): The purchase is to be financed by money borrowed at 12% per year. Use this information to answer, What is the conventional B–C ratio for Truck X? (a) 1.41 (b) 0.87 (c) 1.64 (d) 1.10 (e) 1.15.The town of Podunk is considering building a new downtown parking lot. The land will cost $25,000, and the construction cost of the lot will be $150,000. Each year, costs associated with the lot will be $17,500. The income from the lot is $18,000 the first year, increasing by $3500 each year for the 12-year expected life of the lot. Determine the B/C ratio if Podunk uses a cost of money of 4%.