Because of a chronic water shortage in California, new athletic fields must use artificial turf or xeriscape landscaping. If the value of the water saved each month is $6000, how much can a private developer afford to spend now on artificial turf provided he must recover his investment in 5 years. Use an interest rate of 18% per year, compounded continuously? Write the spreadsheet function to display the answer.

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: The Atlantic Medical Clinic can purchase a new computer system that will save $5,000 annually in…

A: The question is related to the Capital Budgeting. The details are given regarding the same.  It…

Q: You buy a house that costs $10,000. Its annual maintenance cost = $100/year. After 5 years, you can…

A: Given: Initial cost = $10,000 Maintenance cost = $100 Years = 5 Year 5 sale value = $20,000

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Calculations of compound interest compounded on daily basis on borrowed amount is shown below:…

Q: If a garden center is considering the purchase of a new tractor with an initial investment cost of…

A: A payback period seems to be the amount of time a company anticipates it will take to recoup its…

Q: Because of a chronic water shortage in California, new athletic fields must use artificial turf or…

A: Present value refers to the discounted value of future expected cash flows at the rate of interest…

Q: You own a coal mining company and are considering opening a new mine. The mine will cost $120…

A: Net present value and internal rate of return are the methods of capital budgeting that are used to…

Q: a) the payback period is how many years? b) the project meets/does not eat the benchmark?

A: Discounted payback period (DPP) refers to a period within which the sum invested by the investor or…

Q: If a garden center is considering the purchase of a new tractor with an initial investment cost of…

A: Payback period is defined as time taken to recover original investment. Hence if payback period is…

Q: overnment is considering building more 9% discount rate and a 50 year time pe y do so, they will…

A: We need to compute the net present value of building extra space.

Q: a) Calculate the net present value for both projects. Answer to the nearest cent b) Find the…

A: To determine the net present value, we need to discount each cash flow to PV…

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: 3. Given: Your irrigation district is planning to build a new pipeline. The initial cost is expected…

A: Capital cost means the present value or worth of a constant annual cost over an infinite period.…

Q: Give me the correct answer please?Bid Amount You are working on a bid to build two apartments…

A: Referenceshttps://www.investopedia.com/terms/d/depreciation.asp

Q: ent of Public Works and Highways is considering the construction of new highway through a scenic…

A: Benefit cost ratio is present value of annual benefits to initial investment.

Q: nts. what is the NPV of Alternative B?

A: Given information for Alternative B is: Annual Cash flow = $11000 Years = 6  Interest rate = 9%

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: Continuous interest is computed below:

Q: j. Discount the total benefits received in the future and put into column. Use 12% as your discount…

A: Given Table:

Q: A university's college of engineering would like to determine how much it will cost to keep its…

A:

Q: You've graduated from college and are now working in an investment firm where you advise clients on…

A: The positive profit yield suggests potential profitability, but additional considerations, such as…

Q: Let say if a businessmen consulting with a Medical Center analyzing a possible improvement upgrade…

A: That savings amount which an investor wants to put aside in some security or some asset to earn…

Q: You are considering whether to replace an existing flow meter. The existing meter can be sold now…

A:

Q: Jasmine Manufacturing is considering a project that will require an initial investment of $51,900…

A: Year Cash flow 0 -51900 1 9700 2 9700 3 9700 4 8400 5 8400 6 1500 7 1500 8 1500…

Q: You found your dream home! The down payment is $29,000. However, you still need 40% of the down…

A: The interest calculated on the initial or principal amount which includes all the accumulated…

Q: A town would like to build a new recreation center in 16 years. They predict they will need $18…

A: An annuity is a phenomenon of where a financial goal is reached by investing a small amount on a…

Q: Warren buffet decides to endow an annual investment symposium at DePaul starting next year and…

A: Symposium Cost =$15000 Annual Investment = Let A Continue forever Interest Rate (i)=5%

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: You purchase a plot of land worth $52,000 to create a community garden. To do so, you secure a…

A: The concept of time value of money will be used and applied here.As per the concept of time value of…

Q: TE THE B/C RATIO AND ST WORTH DOING (YES /NO)

A: The benefit-cost ratio is a numerical or qualitative metric that depicts the correlation between…

Q: Tower City aims to construct a new bypass between two main rout travel time. The route will cost $15…

A: ERR is calculated as shown below.

Q: "A university wants to utilize a solar energy system to reduce its energy bill. The investment cost…

A: The present worth of investment refers to the net present value. The net present value is 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: 5 discount rate and a 50 year time period. so, they will have to pay $280,000 immediately (t = 0) to…

A: We need to compute the net present value of building extra space.

Q: Your landlord is planning to renovate the pool in your apartment. The New pool will cost 152,895…

A: Here, Cost of Pool is $152,895 Revenue is year 4 is $54,500 Revenue in Year 10 is $87325 Operational…

Q: The owners of a condominium building wish to save enough money to replace the roof on their building…

A: Using excel PMT function

Q: A contractor borrows $40,000 from a bank. According to the agreement between them, the contractor…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If a garden center is considering the purchase of a new tractor with an initial investment cost of…

A: Payback period is indicator of how much period, the project takes to return the initial investment.

Q: A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive…

A: Amount of loan would be the present value of payments done based on time and interest rate of the…

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

A: To determine whether Tower City should construct the new road, we need to calculate the Net Present…

Q: most likely have 4. What is the present worth of the landfill with annual operating costs of…

A: Annual operating cost (C) = $ 200,000 Annual interest rate (R) = 8% Period (N) = 20 Years

Q: The Browning family of Colorado wants to buy a $102,000 house. (a) If they can get a loan of 80% of…

A: Step 1 The Federal Housing Administration insures private lenders who make FHA loans. The FHA does…

Q: You must decide whether to buy, build or lease a building for your business needs over the next 10…

A: In a lease, an asset (such machinery, vehicles, real land, or equipment) is given to another person…

Q: A proposed cost-saving device has an installed cost of $820,000. The device will be used in a…

A: The Company manufacture and sells goods after bearing lots of costs such as material labor,…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.