rjrj The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill areawas 48,000 m² and the installed liner cost was $8 per m² in order to recover the investment, the owner charges to unload at therates of $18.00 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 5.00 years. If theannual traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will thelandfil owner make on the investment?The rate of retum that will be made by the landfill owner isper year

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Answered: The Camino Real Landfill was required…

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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The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 47,000 m² and the installed liner cost was $8 per m2. In order to recover the investment, the owner charges to unload at the rates of $17 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment? The rate of return that will be made by the landfill owner is % per year.
Answer the questions correctly. 5.
The Department of Public Works is trying to decide between "patching" a road or repaving it completely. If the "patching" system is used, approximately 300 cubic meters of material will be required, at $25 per cubic meter (on site). Additionally, the berms will need to be re-constructed, which will cost $3000. The annual cost of routine maintenance of the "patched" road would be $4000. Repairs would only last 2 years, after which they would have to be re-made. The other alternative is for the department to repave the entire road, which would cost $65,000. This area would last 10 years if the road were maintained at a cost of $15000 per year, starting in 4 years. Regardless of which alternative is chosen, the road will be rebuilt within 10 years. If the interest rate is 13% per year, which alternative should the department select, based on present value?
An environmental consultant is considering the installation of a water storage tank for a client. The tank is estimated to have an initial cost of $426,000, and annual maintenance costs are estimated to be $6,400 per year. As an alternative, a holding pond can be provided a short distance away at an initial cost of $180,000 for the pond plus $90,000 for pumps and piping. Annual operating and maintenance costs for the pumps and holding pond are estimated to be $17,000. The planning horizon is 20 years, and at that time, neither alternative has any salvage value. Determine the preferred alternative based on a present worth analysis with a MARR of 20%/year.
A water pump to be used by the city’s maintenance department costs $10 000 new. A running-in period, costing $1000 immediately, is required for a new pump. Operating and maintenance costs average $500 the first year, increasing by $300 per year thereafter. The salvage value of the pump at any time can be estimated by the declining balance rate of 20 percent. Interest is at 10 percent. Using a spreadsheet, calculate the EAC for replacing the pump after one year, two years, etc. How often should the pump be replaced?
A city has purchased a new asphalt paving machine for $300,000.The city comptroller states that the machine will be depreciatedusing a stright line method. At the end of 8 years, the machinewill be sold with an expected salvage value of 60,000.a. Determine the function V = f(t) which expresses the bookvalue of the machine V as a function of its age t.b. What is the book value expected to be when the machine is 6years old?
Green County is planning to construct a bridge across the south branch of Carey Creek to facilitate traffic flow though Clouser Canyon. The first cost for the bridge will be $9,500,000. Annual maintenance and repairs the first year of operation, estimated to be $10,000, are expected to increase by $1000 each year thereafter. In addition to regular maintenance, every 5 years the roadway will be resurfaced at a cost of $750,000, and the structure must be painted every 3 years at a cost of $100,000. If Green County uses 5% as its cost of money and the bridge is expected to last for 20 years, what is the EUAC?
A special purpose machine toolset costs $20,000. The toolset will be financed through a bank loan of $10,000 repayable in two equal annual payments at 10% compounded annually. The toolset is expected to provide annual savings of $30,000 for two years and is to be depreciated by a 3-year MACRS method. This special purpose toolset will require annual O&M maintenance of $5000 per year. The salvage value at the end of two years is expected to be $8,000. Assuming a marginal tax rate of 25% and a MARR of 15% find the following: a) Find yearly depreciation, any annual interest payments, the taxable income for each year, and then calculate the yearly taxes. b) Identify any gain or loss from the salvage of the asset at the end of the 2nd year; calculate any additional taxes or credits for the 2nd year.
The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $150,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. Use this information to solve, The BV at the end of the second year is (a) $27,771 (b) $41,667 (c) $116,675 (d) $33,325
A plasma arc furnace has an internal combustion temperature of 7,000◦C andis being considered for the incineration of medical wastes at a local hospital.The initial investment is $300,000 and annual revenues are expected to be$175,000 over the six-year life of the furnace. Annual expenses will be $100,000 at the end of year one and will increase by $5,000 each year there after. The resale value of the furnace after six years is $20,000. Solve, a. What is the simple payback period of the furnace? b. What is the internal rate of return on the furnace?
A “greenway” walking trail has been proposed by the city of Richmond. Two mutually exclusive alternative locations for the 2-meter-wide trail have been proposed: one is on flat terrain and is 14 kilometers in length, and the other is in hilly terrain and is 12 kilometers in length. Planning and site preparation cost is 20% of the asphalt-paving cost, which is $3.00 per square meter. Annual maintenance for the flat terrain trail is 5% of thepaving cost, and annual maintenance for the hilly trail is 8% of the paving cost. If the city’sMARR is 6% per year and perpetual life of the trail is assumed, which trail should be recommended to minimize the capitalized cost of this project?
A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $17,200 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,000. A new power line will cost $25,500 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year and using an AW analysis, what must be the first cost of the above ground line to make the two alternatives equally attractive economically? The first cost of the above ground line to make the two alternatives equally attractive economically is $-1

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