Please use 2025 instead of 2021 for calculations :) 8-19 The provincial highway department is analyz-ing the reconstruction of a mountain road. Thevehicle traffic increases each year; hence thebenefits to the motoring public also increase.Based on a traffic count, the benefits are pro-jected as follows:Year201620172018201920202021End-of-Year Benefit$10,00012,00014,00016,00018,00020,000and so on, increasing$2,000 per yearThe reconstructed pavement will cost$275,000 when it is installed and will have a15-year useful life. The construction periodis short; hence a beginning-of-year recon-struction will result in the listed end-of-yearbenefits. Assume a 6% interest rate. The re-construction, if done at all, must be done nolater than 2021. Should it be done, and if so, inwhat year?NFFI

The question addresses a cost-benefit analysis for the reconstruction of a mountain road by the…

Answered: ing the reconstruction of a mountain…

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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On January 1, 2021 the national government provided a grant to Brgy ACYFA2 amounting to 24,000,000 intended to contrustruct a new barangay hall provided that the said construction was finished August 15, 2021 for an amount of P32,000,000 with best estimate of the useful life at 40 years Based on the problem, what is the net effect on the profit or loss for the year 2023? Ans: -200,000 *need solution*
11) The Department of Public Works has $1.1 million to allocate amongst several public projects. Data on these projects are presented in the following table: Annual benefit, Project First cost, $K $K/year Life, years 400 100 10 B 300 100 25 250 80 15 500 70 40 350 90 10 200 60 20 Using a MARR of 15%, rank the projects by their BCR, and comment on the most efficient way to allocate $1.1 million.
The following events relate to Habitat for Humanity International's activities. If appropriate, assume a discount rate of 3 percent per annum. Expenditures for house building activities are categorized as program expense. Need Part b. answer. 6. A donor contributes $15,000 in cash and signs an agreement to contribute $15,000 at the beginning of each of the next four years, to support specific Habitat for Humanity projects. a. Contribution received now Amount $ 15,000✔ Classification: Net assets without donor restrictions Amount $ x Classification: Net assets with donor restrictions Recorded? Yes b. Contributions received the next four years Recorded? Yes ◆
All of the following cash flows should be identifiedas benefits, except:a. longer tire life because of smooth pavementb. $200,000 annual income to local businessesbecause of tourism created by a water reservoirc. expenditure of $20 million for construction of a highwayd. fewer highway accidents because of improved lighting.
There are five alternatives for improvement of a road. Determine which alternative shouldbe chosen if the highway department is willing to invest money as long as there is a B/Cratio of at least 1.00. Alternatives Annual Benefits, ₱ Annual Cost, ₱ 1 950,000 1,050,000 2 1,400,000 1,500,000 3 2,850,000 2,150,000 4 3,400,000 2,800,000 5 4,250,000 3,450,000
As part of a community initiative, funding is being sought from potential contributors to sustain a public park's maintenance costs. You are considering donating to cover all future expected maintenance expenses for the park. The projected maintenance costs are $48,000 per year for the first five years, $60,000 per year from years 6 to 10, and $72,000 annually thereafter, assuming the park has an indefinite service life. If the funds are placed in an account with a 15% annual interest rate, what should be the size of your donation?
Need help please show all work neatly. Thanks
All of the following cash flows should be identified as fenefits, except: O expenditure of $20 million for construction of a highway O fewer highway accidents because of improved lighting O $200,000 annual income to local businesses because of tourism created by a water reservoir O longer tire life because of smooth pavement
4–10. Assume at the beginning of 2020 the Village of Ashlawn Street and Highway Fund (a special revenue fund) has cash of $336,000 offset by assigned fund balance in the same amount. 1.. During the year, the Village signed contracts for bridge repairs that amounted to $440,000.| 2.>The bridge repairs were completed and an invoice was received for $435,000, of which $362,000 was paid in cash. 3.>The special revenue fund reimbursed the General Fund for a payment the General Fund made on behalf of the Street and Highway Fund in the amount of $2,500. This amount is not related to the bridge repairs under the state grant. 4. The state government paid the Village $412,000 on work completed under the grant before year-end. Required:| a.>Prepare thejournal entries for the above transactions. Prepare Closing entries for year-end.| b.>Prepare a Statement of Revenues, Expenditures, and Changes in· Fund Balance for the special revenue fund. c.>Prepare a Balance Sheet.
A Canadian city approved building Rapid Transit (ION) to provide greater transportation choice for residents. Here are some estimates of cash flows, and other information, for the plan. • First cost in year 0: $816,000,000 • Annual operating cost: $7,000,000 in year 1, increasing by 2% per year Major technology upgrades: $18,000,000 every five years, starting seven years from now • MARR = 16.71% • Number of passengers per year = 12,000,000 use per year (120,000 passengers using it on average for 100 times per year). Calculate the levelized cost for each ticket. The levelized cost for each ticket is $ (Round to the nearest cent as needed.)
A one-mile section of a roadway in Florida has been washed out by heavy rainfall. The county is considering two options for rebuilding the road. Pertinent data are presented below. If the county’s MARR for this type of project is 5% per year, which replacement option should be chosen? Stateyour assumptions.
It is known that a project for the construction of public facilities with estimated costs and benefits of the project is as follows: • 6 year project life. • The applicable discount rate is 10% in the first year and the discount for the first year the second is an increase of 5%. • Expenses incurred only in year 1 and 2, with each Rp. 515,000,000 and Rp. 415 000 000. • Benefits received from year 3 to year 6 respectively Rp. 205,000,000, Rp. 305 000 000, Rp. 405 000 000 and IDR 505,000,000 Please count and explain the Project investment criteria a. Payback Period of Investment criteria b. NPV (net present value) criteria c. IRR (Internal Rate of Return) criteria

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ing the reconstruction of a mountain road. The vehicle traffic increases each year; hence the benefits to the motoring public also increase. Based on a traffic count, the benefits are pro- jected as follows: