A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimated at $600 million. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accountants in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridge project? (a) $18 million (b) $18.2 million (c) $20,000 million (d) $219,500 million?

Q: The estimated present cost to start a proposed municipal government project is $5,500,000. The…

A: The benefit-cost ratio (BCR) is a key metric in cost-benefit analysis that provides a summary of the…

Q: The city is building bridge that will cost 1.2 million dollars today and $25,000 per year to…

A: Initial Cost = 1,200,000 Annual Maintenance Cost in perpetuity = 25,000 Interest Rate = 10%

Q: Consider a project to supply your church with 55,000 gallons of hand sanitizer annually for church…

A: Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to…

A: Present worth  The present value method refers to calculating the present value of future cash. The…

Q: The town of Podunk is considering building a new downtown parking lot. The land will cost $25,000,…

A: Given information: Cost of the land is $25,000, Cost of construction of the lot is $150,000 Costs…

Q: Consider a project to supply your church with 55,000 gallons of hand sanitizer annually for church…

A: NPV is the net current worth of cash flows that are expected to occur in the future. It is computed…

Q: GoG is considering a proposal to construct a new bypass around city “A”. The proposal will involve…

A: Given Initial Cost =$60 million Annual maintenance cost = $2.25 million Life = 20 years Social…

Q: Plymouth is looking at a new project on campus that will require an investment of $500,000. The cash…

A: The net present value refers to the capital budgeting metric which takes into account the time value…

Q: Consider a project to supply your church with 55,000 gallons of hand sanitizer annually for church…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: You are considering developing an 18-hole championship golf course thatrequires an investment of…

A: Formula:

Q: A city is spending $20 million on a new bridge. Operating and maintenance expenses for the bridge…

A: First cost (C) = $20 million Annual cost (A) = $0.6 million from year 3 Major repairs cost (R) =…

Q: The city is building bridge that will cost 1.2 million dollars today and $25,000 per year to…

A: According to the time value of money concept, the value of money in the future will be less worth…

Q: Sunland Automotive is considering adding state safety inspections to its service offerings. the…

A: Modified internal rate of return (MIRR), which is the discounting rate that converts future cash…

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: A new school building was recently built in the area. The entire cost of the project was…

A: Cost of the project = $26,000,000.APR of 3.3%Time duration - 30 yearTotal families 17000

Q: GoG is considering a proposal to construct a new bypass around city “A”. The proposal will involve…

A: Benefit cost ratio (BCR) is the ratio between annual benefits to annual total cost. Total annual…

Q: arket value at the end of its life. Operating and maintenance expenses for the system are projected…

A: The capitalized cost of system is the present value of all cost of the system that would incur…

Q: The construction cost of the bypass is $20 million, and $500,000 would be required each year for…

A: A benefit-cost ratio is an indicator, used in cost benefit analysis, that attempts to summarize the…

Q: he initial cost of a monument installation will be $110,000. The cost of maintaining a certain…

A: initial cost of a monument installation  $  1,10,000.00 cost of maintaining  $     12,000.00…

Q: A new school building was recently built in the area. The entire cost of the project was…

A: The objective of the question is to determine the total amount that each family should be required…

Q: what is the annualized cost of the bridge project? C

A: Given in the question: Cost of the bridge 600 Million Annual Costs 200,000 Interest…

Q: the city has just built an indoor soccer complex at a cost of 2,250,000 and considers it a…

A: The present value of the cash flow is the current worth of the stream of cash flows received or…

Q: An engineering school has just completed a new engineering complex worth $50 million. A campaign…

A: Fund to be raised now = PV of perpetual cost stream = E/r Where E= perpetual cost = $2 million per…

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: Consider a project to supply your church with 55,000 gallons of hand sanitizer annually for church…

A: Hi, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: The initial investment in a government-funded city flood control system is $500,000. From the…

A: In this we have to find out total present value of all cost.

Q: find the expected return for investing in buildings in a metro area where the following three…

A: Expected return on investment = Net income/ Initial cost (multiply with 100 to get in percentage)…

Q: Consider a project to supply your church with 55,000 gallons of hand sanitizer annually for church…

A: NPV formula: NPV = -initial cashflow +present value of future cashflow

Q: Consider a project to supply your church with 55,000 gallons of hand sanitizer annually for church…

A: Net Present Value (NPV) method is a type of capital budgeting technique. It is used for finding…

Q: Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to…

A: The problem statement focuses on calculating the PW of the costs incurred for the project. It…

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: A city is trying to decide whether to build a parking garage. An engineeringplan calculates that the…

A: The Benefit-Cost (B/C) ratio represents the relationship between the costs and benefits of a…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.