outer belt highway is being planned for The initial cost is estimated to be $170,000,000. Benefits to the public are expected to be $18,000,000 per year. Maintenance costs are estimated at $1,200,000 per year. The beltway will have to be resurfaced every 10 years at a cost of $7,000,000. The road is to be maintained indefinitely. The city's cost of funds is 8%. An a metropolitan area in Tennessee. Based on maintaining the road in perpetuity, find the conventional benefit-cost ratio. Show your calculations in the space below.

outer belt highway is being planned for The initial cost is estimated to be $170,000,000. Benefits to the public are expected to be $18,000,000 per year. Maintenance costs are estimated at $1,200,000 per year. The beltway will have to be resurfaced every 10 years at a cost of $7,000,000. The road is to be maintained indefinitely. The city's cost of funds is 8%. An a metropolitan area in Tennessee. Based on maintaining the road in perpetuity, find the conventional benefit-cost ratio. Show your calculations in the space below.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

m6
which is an example of something that could go wrong during te municipal entitelement or permitting phase of development O NIMBYIsm- the community does not support the project O there is a lien on the property O 20- year amortization term none of the above
10. Two different routes are under consideration for a new interstate highway as folows in the table below. For either route, the volume of traffic will be 400,000 cars per year. These cars are assumed to operate at $0.25 per mile. Assume a 40-year life each road and an interest rate of 10%. Determine which route should be selected. 15 Click the icon to view the data for the two routes. 16 Click the icon to view the interest factors for discrete compounding when i= 10% per year. The BC(i)2-1 is (Round to two decimal places.) Which route should be selected? Choose the correct answer below. O Route 2 Route 1 15: More Info Length of Highway First Annual Cost Upkeep The "long" route Transmountain shortcut 22 miles $21 million $140.000 10 miles $45 million $165,000 16: More Info
1. Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. The firm's MARR is 20% per year. The estimated cash flow for each alternative are as follows: Alternative A Alternative B Capital Investment $20,000 $30,000 Annual Expenses 4,000 2,000 Useful life (years) 5 10 Market Value (at end of useful life) $4,000 $6,000 Assume the study period is shortened to five years. The market value of alternative B after five years is estimated to be $12,000. Which alternative would you select using NPW-C? (Draw the cash flow diagram and solve).
A person considers an inversion that saves 100,000 a year. annual taxes equal to 2% of its value per year annual maintenance expenses equivalent to 3% of its value lifespan of 5 years, no salvage value WIth a Depreciation using the straight line method what is the maximum you should pay for this investment? pays interest contributions 40% MARR9% a person wants to save for the university they will be attending in 5 years. Today annual tuition costs 20,000. If you can make investments that yield 8% and the inflation rate of 5%, how much should you save per year for the next 4 years to pay for a tuition year that increases according to general inflation?
With interest at 10%, what is the benefit-cost ratio for this government project? $208,355 Initial Cost Additional costs at the end of year 1 and year 2 Benefits at end of year 1 and year 2 Annual benefits at end of year 3 through year 10 $23,720/year $0/year $91,825/year Enter your answer as follow: 12.34
Need answers,ASAP 4. a sediment control project in nueva vizcaya requires an initial investment of 145,000, has a salvage value of 22,000 after six years, incurs annual expenses of 10,000, and provides annual revenue of 18,000. using a marr of 10%, determine the aw of this project.
Mega Dynamics is considering the following two projects which have a cost of capital of 11%. What is the NPV of the Flying Car project? The cash flows for each project are given below: WACC = 11% Time Flying Car Electric Car 0 -180,000 -100,000 1 30,000 25,000 2 50,000 30,000 3 75,000 40,000 4 110,000 50,000 A. 14,908 B. 8,158 C. 13,431 D. 9,055
USAA is considering adding a new runway and has 3 options for the runway surface: asphalt, concrete, and a mixture of both. The benefit from all 3 alternatives is the same. Therefore, these projects are cost-based alternatives, and the cash flows are provided in the table below. Using conventional benefit/cost ratio with MARR of 9%, which alternative should be selected? First cost AW of resurfacing cost Asphalt Concrete Mixture $250,000,000 $350,000,000 $400,000,000 $30,000,000 $20,000,000 $10,000,000 Disbenefits at construction time $5,000,000 Life, years Asphalt is better Concrete is better The Mixture is better 20 $10,000,000 20 $12,000,000 20
An alternative method of construction would be to construct a bridge of pre-stressed concrete construction. The estimated life of such a structure will be 20 years. The first cost would be $150,000 and it would have a salvage value of $20,000 at the end of its useful life. The yearly maintenance cost would be $2,000. What would be the total yearly cost? The interest rate is 8%.
Q3 solution