Q3. The municipality faced a lot of problems in Alin - Dubai Road accidents. In general, each normalaccident cost $3,000, while each death accident cost $5,000. According to that, the municipality haddecided to propose a new project with the required budget of $120,000 that would help in reducing the numberof accidents. You are Contractor Company, and you have these two proposals, which one, if any, shouldyou have selected:A- Build bridge over this road, the construction cost for this bridge $150,000, annual operation andmaintenance $10,000, annual power loses $9,000, this bridge can reduce around 8 each year ofnormal accident and 5 each year of death one and the contracting will be for 20 years with MARR =12%.B- Increase number of lines in the road, the construction cost for these lines are $50,000, annualoperation and maintenance $4,000, annual power lose $17,000, this bridge reduces around 5 cachyear of normal accident and 4 each year of death one and the contracting will be for 30 years withMARR 12%.

1. When two projects or proposal are given for evaluation. Then evaluation should be made from the…

Answered: Q3. The municipality faced a lot of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following are examples of diversifiable risk? 1. I. An earthquake damages an entire town 2. II. The federal government imposes a $100 fee on all business entities OOO OO 3. III. Employment taxes increase nationally 4. IV. All toymakers are required to improve their safety standards I and IV only I and III only II and III only II and IV only I, III, and IV only
A large city in the midwest needs to acquire a street-cleanıng machine to keep its roads looking nice year round A used cleaning vehicle will cost $75,000 and have a $20,000 market (salvage) value at the end of its five-year Iife. A new system with advanced features will cost $150,000 and have a $50,000 market value at the end of its five-year life. The new system is expected to reduce labor hours compared with the used system. Current street-cleaning activity requires the used system to operate 8 hours per day for 20 days per month Labor costs $40 per hour (including fringe benefits), and MARR is 12% per year compounded monthly a. Find the breakeven percent reduction in labor hours for the new system b. If the new system is expected to be able to reduce labor hours by 20% compared with the used system, which machine should the city purchase? a. The breakeven reduction in lebor hours for the new system is ________% (Round to one decimal place)
The table below shows the various levels of a city's pollution cleanup along with the marginal benefit and marginal cost. Pollution Cleanup Marginal Benefit (dollars) $500 400 300 200 100 Quantity of Pollution Cleanup (units) 25 50 100 150 200 Marginal Cost (dollars) $100 200 300 400 500 Instructions: Enter your answers as a whole number. a. Suppose the city decides to undertake a cleanup level of 25 units. The marginal benefit of cleaning up the 25th unit is $ The marginal cost of cleaning up the 25th unit is $ Since the marginal benefit is [(Click select) the marginal cost, the city should clean up (Click to select) b. Suppose the city decides to undertake a cleanup level of 200 units. The marginal benefit of cleaning up the 200th unit is $ The marginal cost of cleaning up the 200th unit is $ Since the marginal benefit is (Click to select) c. The optimal level of pollution cleanup is the marginal cost, the city should clean up units. (Click to select) pollution. pollution.
2) The council members of a small town have decided that the earth levee that protects the town flooding should be rebuilt and strengthened. The town engineer estimates that the cost of the work at the end of the first year will be $85,000. He estimates that in subsequent years the annual repair costs will decline by $10,000 making the second-year cost $75,000; the third year $65,000, and so forth. The council members want to know what the equivalent present cost is for the first 5 years of repair work if annual effective interest is 4%.
Problem 07.007 - Conventional B/C ratio for road improvement project The cost of grading and spreading gravel on a curvy rural road is expected to be $300,000. The road will have to be maintained at a cost of $34,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be reached with off-road vehicles. The improved accessibility has led to a 144% increase in the property values along the road. If the previous market value of the property was $900,000, calculate the conventional B/C ratio using an interest rate of 6% per year and a 20-year study period. The conventional B/C ratio is
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Refer to Picture, Please answer Part A and B
Assume you currently work for the city of Edmonton in their traffic safety department. It is estimated that you could reduce fatality risk by 3% at a particular intersection if you upgrade the traffic lights to use new high visibility LEDs. The cost of this upgrade is estimated to be $400,000. If we assume a human life is worth 10 million, should you spend the money to upgrade the traffic lights? (Hint: to multiply 1% by 200 you follow this process: 0.01 x 200 = 2). a No, since the expected benefit ($300,000) is lower than the cost. b Yes, since the expected benefit ($400,000) is equal to the cost. c Yes, since the expected benefit ($200,000) is greater than the cost. d No, since the expected benefit ($100,000) is lower than the cost.
If the flood damage estimates for both alternatives were reduced to zero and replaced with benefits of $310,000 per year and $470,000 per year for thetwo alternatives, respectively, the B/C ratio for the Valley alternative is closest to:a. 0.93b. 1.02c. 1.23d. 1.56
A firm has contracted to supply 500,000 gallons of propane fuel for $1.49 million to the local municipality. The municipality wants to break the contract. What does the minimum current market price of propane need to be in order for the firm to benefit from breaking the contract? A. greater than $3.00 per gallon B. greater than $2.99 per gallon C. greater than $3.01 per gallon D. greater than $2.97 per gallon E. greater than $2.98 per gallon
Problem 40: A local city must make an assessment about the feasibility of repairing a bridge. The estimated useful life of the bridge is 25 years. The MARR is 7%. The relevant cost estimates are found in the table below in thousands of dollars. What is the B/C ratio of making repairs most nearly? (A) 1.20 (B) 1.60 (C) 1.90 (D) 2.20 Initial Cost (K$) Annual cost (K$); Year 1-15 Annual Cost (K$); Year 15-25 Salvage Value (K$) Existing 0 11 15 6 Repair 80 4 5 21

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