snowplow, which will cost $117,000. The old snowplow could be sold now for $10,850. The new, larger plow will cost$13,700 more in annual operating costs. Second, the County Board of Representatives believes that the proposed longrunway, and the major jet service it will bring to the county, will increase economic activity in the community. The boardprojects that the increased economic activity will result in $81,340 per year in additional tax revenue for the county.In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county's hurdle rate for capitalprojects is 12 percent.Use Appendix A for your reference.Note: Use appropriate factor(s) from the tables provided.PR 16-47 (Algo) Internal Rate of Return; Sensitivity Analysis (Section 1) (LO 16-1, 16-3)In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county's hurdle rate for capital projects is12 percent. The County Board of Representatives believes that if the county conducts a promotional effort costing $22,550 per year,the proposed long runway will result in substantially greater economic development than was projected originally. However, the boardis uncertain about the actual increase in county tax revenue that will result.Required:Suppose the board builds the long runway and conducts the promotional campaign. What would the increase in the county's annualtax revenue need to be in order for the proposed runway's internal rate of return to equal the county's hurdle rate of 12 percent?Note: Round your intermediate calculations and final answer to the nearest whole dollar.Required increase in tax revenue Use the following information to answer Problems 45-47 (Algo)[The following information applies to the questions displayed below.]Washington County's Board of Representatives is considering the construction of a longer runway at the county airport.Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable theairport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below.Cost of acquiring additional land for runwayCost of runway constructionCost of extending perimeter fenceCost of runway lightsAnnual cost of maintaining new runwayAnnual incremental revenue from landing fees$78,500236,77032,47543,85031,40044,760In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a newsnowplow, which will cost $117,000. The old snowplow could be sold now for $10,850. The new, larger plow will cost$13,700 more in annual operating costs. Second, the County Board of Representatives believes that the proposed longrunway, and the major jet service it will bring to the county, will increase economic activity in the community. The boardprojects that the increased economic activity will result in $81,340 per year in additional tax revenue for the county.In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county's hurdle rate for capitalprojects is 12 percent.Use Appendix A for your reference.Note: Use appropriate factor(s) from the tables provided.PR 16-47 (Algo) Internal Rate of Return; Sensitivity Analysis (Section 1) (LO 16-1, 16-3)In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county's hurdle rate for capital projects is12 percent. The County Board of Representatives believes that if the county conducts a promotional effort costing $22,550 per year,the proposed long runway will result in substantially greater economic development than was projected originally. However, the board

The internal rate of return is used to examine the investment's profitability. It is a percentage…

Answered: Suppose the board builds the long…

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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As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $700,000,000. Currently, the assessment rate is 35% and the tax rate is 30 mills. The county commission increases the assessment rate to 55% and the tax rate to 35 mills. (a) How much property tax (in $) was collected under the old rates? $ (b) How much more tax (in $) revenue will be collected under the new rates? $
A local municipality is considering investing $220,000 to upgrade a park. Based on similar investments made by similar cities, it is anticipated the investment will result in annual costs and annual benefits over a 7-year period as shownin the cash flow profhle given below in thousands of dollars. Notice, an intermediate investment of $140,000 is anticipated in the 6th year of the investment. Based on a MARR of 5%, calculate the benefit-cost ratio of the investment. Round answer to two decimal places. (All values in thousand dollars) End-of Year Costs Benefits Net Cash Flow $220 -$220 $70 $120 $50 $70 $130 $60 $70 $140 $70 4 $70 $150 $80 $70 $160 $90 $210 $170 -$40 7. $70 $160 $90 1.45 2. in
Explain it early and correctly. Not explain in excel works
A community public works project will cost $92,000 and will benefit five different individuals. Individual Individual Benefit ($) Individual Cost ($) 1 4,500 6,000 2 18,500 15,000 3 19,000 17,000 4 30,000 24,000 5 29,000 30,000 Is this project economically feasible? Please show work in an Excel spreadsheet that lists the benefit for each individual. Would this project be approved by a majority at a community referendum?
As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $700,000,000. Currently, the assessment rate is 35% and the tax rate is 40 mills. The county commission increases the assessment rate to 55% and the tax rate to 45 mills. (a) How much property tax (in $) was collected under the old rates? $ (b) How much more tax (in $) revenue will be collected under the new rates? $
A city has a solid waste landfill that was filled 12 percent in Year 1 and 26 percent in Year 2. During those periods, the government expected that total closure costs would be $2 million. As a result, it paid $50,000 to an environmental company on July 1 of each of these two years. Such payments will continue for several years to come. Indicate whether each of the following independent state-ments is true or false and briefly explain each answer. The city has a December 31 year-end.a. The government-wide financial statements will show a $230,000 expense in Year 2 but only if reported in an enterprise fund.b. The fund financial statements will show a $50,000 liability in Year 2 if this landfill is reported in the general fund.c. The fund financial statements will show a $50,000 liability at the end of Year 2 if this landfill is reported in an enterprise fund.d. If this landfill is reported in an enterprise fund, the government-wide financial statements and the fund financial statements…
Please explain and answer ALL questions. A,B, and C. Thank you.
In response to a petition signed by the property owners of Riverdale Subdivision, the city of Pewaukee will oversee the installation of sidewalks, curbs, and gutters in the subdivision, to be accounted for in the city’s capital projects fund. Pewaukee reports on a calendar-year basis. Construction is estimated to cost $900,000 and will be financed by a $100,000 county grant, a $50,000 transfer from the city’s general fund, and special assessments of $750,000 to be levied against subdivision property owners. One-third of the levy is to be due on February 1 of each year, starting with 2018. The first $250,000 installment will be received by the capital projects fund directly. The remaining installments will be collected by the debt service fund and will be used to service the related bond debt. The project is to begin on January 15, 2018, and is to take 18 months to complete. It is estimated that 70% of the work will be completed during 2018.To cover construction costs, a 6%, $500,000…
A capital projects fund would probably not be used for which of the following assets? A. Construction and installation of new shelving in the mayor's office. B, Replacing a bridge. C. Financing and construction of three new fire substations. D. Purchase and installation of an entity-wide integrated computer system.
[The following information applies to the questions displayed below.] Washington County's Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below. Cost of acquiring additional land for runway Cost of runway construction Cost of extending perimeter fence Cost of runway lights Annual cost of maintaining new runway Annual incremental revenue from landing fees In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $105,000. The old snowplow could be sold now for $10,500. The new, larger plow will cost $6,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway,…
Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below. Cost of acquiring additional land for runway $ 70,000 Cost of runway construction 200,000 Cost of extending perimeter fence 29,840 Cost of runway lights 39,600 Annual cost of maintaining new runway 28,000 Annual incremental revenue from landing fees 40,000 In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $100,000. The old snowplow could be sold now for $10,000. The new, larger plow will cost $12,000 more in annual operating costs. Second, the County Board of Representatives believes that the…

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