8.12 US Airport Authority (USAA) is entertaining three independent proposals presented in the table below for Gator Regional Airport. USAA uses a MARR of 12 percent and has no budget constraint. Using B/C ratio and PW values, which of the following projects are economically justified and should be undertaken by USAA to maximize the services to the public? New Parking Garage (NPG) Flight Information Screen (FIS) Gate Expansion (GE) (in millions) First cost (P) $120 $3 $50 Annual operating cost (АОC) $5 $0.5 $3 Annual benefits (B) $25 $1.0 $6 Disbenefits at the time $5 $0 $2 zero (D) Salvage value (S) Life, years $15 $0.4 $5 20 5 25

8.12 US Airport Authority (USAA) is entertaining three independent proposals presented in the table below for Gator Regional Airport. USAA uses a MARR of 12 percent and has no budget constraint. Using B/C ratio and PW values, which of the following projects are economically justified and should be undertaken by USAA to maximize the services to the public? New Parking Garage (NPG) Flight Information Screen (FIS) Gate Expansion (GE) (in millions) First cost (P) $120 $3 $50 Annual operating cost (АОC) $5 $0.5 $3 Annual benefits (B) $25 $1.0 $6 Disbenefits at the time $5 $0 $2 zero (D) Salvage value (S) Life, years $15 $0.4 $5 20 5 25

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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three In the development of a publicly owned, commercial waterfront area, possible independent plans are being considered. Their costs and estimated benefits are given in the table to the right. a. Which plan(s) should be adopted, if any, if the controlling board wishes to invest any amount required, provided that the B-C ratio on the required investment is at least 1.0? b. Suppose that 15% of the costs of each plan are reclassified as disbenefits. What percentage change in the B-C ratio of each plan results from the reclassification? c. Comment on why the rank-orderings in (a) are unaffected by the change in (b). Plan ABC PW ($000s) Costs Benefits $97,000 $149,000 119,000 105,000 130,000 136,000
find The equivalent annual net benefit of this project.
1
I need help with FIN-320 module 7 assignement. The scenario is listed below: Financial Option 1: Purchase a $10 Million BuildingRationale for investment: The business is considering environmental, social, and corporate governance(ESG) factors as part of its investment into a new building for its headquarters. The building itself will bea Leadership in Energy and Environmental Design (LEED)-certified building, but the new site beingconsidered currently houses a large, inactive gas station that sold both gasoline and diesel fuel. The newsite also has a sizable repair facility left over that was used for deliveries and tractor-trailer trucks formore than 50 years. While some restoration was performed on the site prior to the new building’sconstruction, the previous owner ran out of funds before they were ever able to bring the site up toLEED standards. Four large fuel tanks remain on the site, and they will also need to be addressed perLEED standards.Assumptions to consider: $10 million…
E1 A city government is considering increasing the capacity of the current waste water treatment plant. The estimated financial data for the project are as follows: Calculate the benefit-cost ratio for this capacity expansion. Calculate B, I and C’ Calculate BC Ratio
3. Using both Payback and NPV results, which projects, if any, would yourecommend McGloire should fund? Justify your answer and include a criticalassessment of two nonfinancial qualitative factors that could affect the investment
A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following. Solve, a. Which system has the greatest B–C ratio? b. Which system has the largest incremental B–C ratio(based on differences between alternatives)? c. Which system should be chosen ?
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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An electrical utility is experiencing a sharp power demand that continues to grow at a high rate in a certain local area. Two alternatives are under consideration. Each is designed to provide enough capacity during the next 25 years, and both will consume the same amount of fuel, so fuel cost is not considered in the analysis. • Alternative A. Increase the generating capacity now so that the ultimate demand can be met without additional expenditures later. An investment of $33 million would be required, and it is estimated that this plant facility would be in service for 25 years and have a salvage value of $0.7 million. The annual operating and maintenance costs (including income taxes) would be $0.4 million. salvage • Alternative B. Spend $15 million now and follow this expenditure with future additions during the 10th year and the 15th year. These additions would cost $18 million and $12 million, respectively. The facility would be sold 25 years from now with a value of $1.25…
You are considering the following project. What is the NPV of the project? WACC of the project: 0.10 Revenue growth rate: 0.05 Tax rate: 0.40 Revenue for year 1: 13,000 Fixed costs for year 1: 3,000 variable costs (% of revenue): 0.30 project life: 3 years Economic life of equipment: 3 years Cost of equipment: 20,000 Salvage value of equipment: 4,000 Initial investment in net working capital: 2,000
There are five alternatives for improvement of the local farm to market road. Determine which alternative should be chosen if the highway department is willing to invest money as long as there is a B/C ratio of at least 1.00. Alternatives Annual Benefits Annual Cost 1 900,000 1,000,000 2 1,300,000 1,400,000 3 2,800,000 2,100,000 4 3,300,000 2,700,000 5 4,200,000 3,400,000

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