Typed plz and asap please provide a quality solution and give explanation for steps as well Suppose a new franchise is planning to build a stadium. Assume that the team expects to sell an average of 60,000tickets per game at an average price of $75 each, and play 17 games per season. There is a proposal to build a stadiumat a cost of $600 million, which will be spent in four equal parts over four year: 2021 (years 0), 2022, 2023 and 2024.The stadium is planned to open in 2025 and life of the stadium is expected to be 25 years from the date of opening.Assuming a discount rate of 10%, what is the net present value of the stadium investment?

Answered: Suppose a new franchise is planning to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that you plan to retire at 65. You invest $8,000 per year on your birthday for 10 years starting on your 25th and ending on your 34th birthday. Since you are young, you take more risks with your investments, and earn a rate of return of 12%. Then, you have children and decide to put all your retirement savings into investing in a college fund for them. You leave all accumulated funds in the retirement account, and it earns 6% per year, reflecting an (unwise) rise in caution during middle age. How much money will you have to retire on at 65 (31 years after you stop contributing)
You are considering getting a Little Nero Caesar Salad Franchise, because your boss (the owner of a Down Under Sandwich Shoppe) seems to be making it big. The Down Under Shoppe grosses an average of $380,000 sales annually. You estimate that your business will gross an average of 95% of Down Under’s sales. You must borrow $320,000 from the bank. The bank will charge you 12% per annum interest on this loan. You also will invest $50,000 of your savings in the business (thus you will no longer receive the 4% per annum interest from this). NOTE: neither the bank loan principal nor the $50,000 of your savings you invest is an explicit or implicit cost. However, the interest paid on the bank loan is explicit and the interest foregone on your savings is implicit. Other estimated explicit expenses are: labor $130,000 per year; rent $12,000 a year; utilities $4,000 a year; and salad ingredients $140,000 a year. An explicit expense you will have to pay Little Nero, Inc., is a franchise…
You have an opportunity to invest $49,300 now in return for 500,500 in one year. If your cost of capital is 7 8%, what is the NPV of this investment? The NPV will be $(Round to the nearest cent) CODED
A study by the New York Federal Reserve Bank concludes that an engineering bachelor’s degree generates approximately a 15% return on investment over the course of a decade. Suppose the typical engineering student spends $15,000 per year for four years on his/her education. What extra annual return (in dollars) does the typical student realize during the 10 years following graduation? State your assumptions.
Net present value (NPV) of the project =Single payoff x PVIAF (10.20%, 9 years) - initial outlay = $6,947 x 0.42340 - $2,182 = $759.39 What's the equation for the bolded item?
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A company is about to invest in a joint venture research and development project with another company. The project is expected to last nine years, but yearly payments the company makes will begin immediately (a payment is made today, and the last payment is nine years from today). Salaries will account for $50,000 of each payment. The reminder of each payment will cover equipment costs and facility overhead. The initial (immediate) equipment and facility cost is $50,000. Each subsequent year this figure will drop by $5000 until a cost of $25000 is reached, after which the costs will remain constant until the end of the project. a) Draw a cash flow diagram to illustrate the cash flows for this project. b) At an interest rate of 10%, what is the total future worth of all project payments at the end of the nine years?
(engineering economics) . A dam was built with a construction cost of Rp. 20,000,000,000 in the first year, while in the second year the construction and equipment costs of Rp. 40,000,000,000. During operation the dam will require an operational cost of Rp. 300,000,000 every year. In addition, a maintenance fee of Rp. 450,000,000 every year. While the benefits that will be obtained from the various uses of the dam each year are estimated as follows: Electricity generation : Rp. 1,500,000,000 Flood control: Rp. 500,000,000 Watering : Rp. 1,000,000,000 Recreational facilities : Rp. 800,000,000 Calculate the Benefit/Cost Ratio with i = 12% per year from this project if it is estimated that the dam will be used for 20 years and after that there is a salvage value of Rp. 10,000,000,000
David is a detective in the Atlanta Police Department earning $75,000 per year. He is also an avid cook and people rave about his cooking. David hears of an opportunity to buy an existing restaurant . He needs to take $100,000 out of his brokerage truck to buy the restaurant. The $100,000 averaged a return of 10% over the last few years. Based on the recent history of the restaurant, he expects annual revenues of $400,000. He expects to spend $140,000 on food, $75,000 on employee expense, $50,000 on rent , and $25,000 for utilities each year. David is trying to decide whether to quit his job as a detective and buy the restaurant. Assuming that David is indifferent between being a detective and owning the restaurant, should David quit his job as a detective and buy the restaurant? Explain why or why not. David’s significant other reminds him that he LOVES being a detective and that he will miss being a detective if he decides to go into the restaurant business. After…
The council members of a small town have decided that the earth levee that protects the town from 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 $68,000. He estimates that in subsequent years the annual repair costs will decline by $7000, making the second-year cost $61,000; the third-year $54,000, and so forth. The council members want to know what the equivalent present cost is for the first 5 years of repair work if interest is 6%.
Jason decides to buy a Camaro for $60,000 after graduating college. Jason retires in 35 years and his Camaro is worth $5,000. Jessica decides to invest $60,000 after graduation and puts that money into retirement. The average rate of return is 6.5% per year. At 35 years, how much more money does Jessica have over Jason? Group of answer choices A. $578,735 B. $453,665 C. $543,735 D. ONE MILLION DOLLORSZ
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