What is the consumer surplus for swimmers ?? General accounting The city of Gruberville is considering whether to build a new publicswimming pool. This pool would have a capacity of 800 swimmers perday, and the proposed admission fee is $6 per swimmer per day. Theestimated cost of the swimming pool, averaged over the life of thepool, is $4 per swimmer per day. Gruberville has hired you to assessthis project. Fortunately, the neighboring identical town of Figlioniaalready has a pool, and the town has randomly varied the price of thatpool to find how price affects usage. The results from their studyfollow:Swimming Pool Price per Day Number of Swimmers per Day$8$10$4$6$250020011008001400If the swimming pool is built as planned, what would be the netbenefit per day from the swimming pool? What is the consumersurplus for swimmers?

In order to provide an answer to the question, I began by determining the two most important aspects…

Answered: The city of Gruberville is considering…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5TP: You own a construction company and have recently received a contract with the local school district...

See similar textbooks

Similar questions

None
The town of Melville needs to obtain an additional supply of water from a nearby river. They have been offered two options: diverting water at a point 8 miles upstream and allowing gravity to move the water to the town (the "gravity" plan), or diverting water at a point much closer to the town and using pumps to move the water to the town (the "pumping" plan). The pumping plan would be built in two stages, with half of its capacity installed initially and the other half installed ten years later. For both options, the town wants to use a 40-year life, 10% interest, and no salvage value. The projected costs are in the table below: Initial Cost Additional investment at the end of the 10th year Annual Operation and Maintenance, excluding Power Annual Power Cost Gravity $2,800,000 None $10,000 $25,000 $75,000 Use an Annual Worth analysis to determine the most economical plan for the town. Pumping None $1,400,000 $200,000
The city is installing a new swimming pool in the east end recreation centre. One design being considered is a reinforced concrete pool that will cost $5000000 to install. Thereafter, the inner surface of the pool will need to be refinished and painted every 10 years at a cost of $450000 per refinishing. Assuming that the pool will have essentially an infinite life, what is the present worth of the costs associated with the pool design? The city uses a MARR of 6%. Review the following table and calculate the present worth of the project for a +5% change in refinishing costs. Round your answer to the nearest dollar. Parameter Construction Costs Refinishing Costs MARR [%] -10% -5% Base Case +5% +10% $5000000 $450000 6 Present Worth of -10% -5% 0% +5% Costs +10% Changes to Construction Costs Changes to refinishing Costs Changes to MARR ????? ?
A "Special Commission for Beaches" is formed to design, build and operate a series of beach resorts along the Charles River, which is expected to get cleaner year after year. The SCB is allowed to raise money by selling tax-free bonds (currently selling at about 4% for similar agencies). Revenues will come from user fees and, if necessary, from Cambridge, Boston, and other cities and towns along the river. What discount rate do you use in deciding how fancy to make the bathhouses, the restaurants, and the boating facilities? A 11% B 7% 4% 15%
A municipal engineer is evaluating two alternatives for adding capacity to the water supply system for the city. The first alternative is a dam with a cost of $80,000,000.00 that will require operating and maintenances costs of $250,000.00 per year. The dam will have an infinite life. The second alternative under consideration is a pipeline to transport water from a nearby lake. The pipeline costs $4,500,000.00, it will last five years, and it has operating and maintenance costs of $500,000.00 per year. Using an interest rate of 5%, which alterna- tive should be selected by the city based on capitalized cost?
The city council is considering a proposal about purchasing a new landfill site. Both the current landfill and new landfill would be usable for the next 10 years. The purchase price is $279,000 and the preparatory work will cost $77,800. It is estimated that the new landfill will cost $51,000 less per year to operate than the current landfill. Assume a hurdle rate of 8%. Ignore tax impacts. Required: Calculate the net present value of the new landfill. Should the city council approve the project on financial grounds? Calculate the internal rate of return for the new landfill. Should the city council approve the project on financial grounds?
As an intem in the of town in Pennsylvania)you are asked to do a cost benefit analysis of building a new spanning the river flowing through the town. Currently, the existing bridge is 2 miles away with people who live in town having to drive across heavy traffic to reach it in order to get access to the town's shopping and employment center Assume that the new bridge will cost 25 million dollars, to be paid by a special income tax over the next 20 years What are the opportunity costs of that bridge? What are the benefits of the bridge? list and discuss all the benelits that come to mind What are additional costs beyond opportunity costs? (hint: Climate Change) would you recommend the building of the bridge? Any alternatives?
A city council is considering converting an old industrial lot into a public recreation center. They estimate the benefit to the community to be worth $2,000,000. Contractors have estimated a net cost to build the recreation center and to refurbish the property to be $3,100,000. Should they proceed with the project? A. 0.65 and Yes B. 0.65 and No C. 1.55 and Yes D. 1.55 and No. MCQ
A large land-grant university that is currently facing severe parking problems on its campus is considering constructing parking decks off campus. A shuttle service could pick up students at the off campus parking deck and transport them to various locations on campus. The university would charge a small fee for each shuttle ride, and the students could be quickly and economically transported to their classes. The funds raised by the shuttle would be used to pay for trolleys, which cost about $170,000 each. Each trolley has a 12-year service life, with an estimated salvage value of $12,000. To operate each trolley, additional expenses will be incurred, as given in the table below. If students pay 10 cents for each ride, determine the annual ridership per trolley (number of shuttle rides per year) required to justify the shuttle project, assuming an interest rate of 6%. Click the icon to view the additional expenses. Click the icon to view the interest factors for discrete compounding…
A local sanitation authority needs to purchase a new garbage truck. The authority has two truck models under consideration. The purchase price for Model A is $90, 000. The maintenance and operation costs are $10,000/year. Model B is less expensive to acquire ($60,000 at purchase), but costs more on operation and maintenance. Details of the costs are shown in the table below. Interest rate is 3%. Please help this authority to decide which truck they should purchase. Year Model A Truck Model B Truck Purchase Price $90,000 $60,000 Annual Operation and Maintenance 1 $10,000 $20,000 2 $10,000 $20,000 3 $10,000 $20,000 4 $10,000 $20,000 Calculate the present values of total costs for Model A Truck and Model B Truck, respectively. (Interest rate: 3%) (1’) *Results round to the nearest 2 decimal places. (Note: you may consider using an Excel worksheet to do the calculation). Present value of Model A Truck…
A local sanitation authority needs to purchase a new garbage truck. The authority has two truck models under consideration. The purchase price for Model A is $90, 000. The maintenance and operation costs are $10,000/year. Model B is less expensive to acquire ($60,000 at purchase), but costs more on operation and maintenance. Details of the costs are shown in the table below. Interest rate is 4%. Please help this authority to decide which truck they should purchase. Year Model A Truck Model B Truck Purchase Price (beginning of year) $90,000 $60,000 Annual Operation and Maintenance (end of year) 1 $10,000 $20,000 2 $10,000 $20,000 3 $10,000 $20,000 4 $10,000 $20,000 Calculate the present values of total costs for Model A Truck and Model B Truck, respectively. (Interest rate: 4%) (2’) Present value of Model A Truck total costs: Present value of Model B Truck total costs: Which truck model should this authority choose? Why? (1’)
A local sanitation authority needs to purchase a new garbage truck. The authority has two truck models under consideration. The purchase price for Model A is $90, 000. The maintenance and operation costs are $10,000/year. Model B is less expensive to acquire ($60,000 at purchase), but costs more on operation and maintenance. Details of the costs are shown in the table below. Interest rate is 4%. Please help this authority to decide which truck they should purchase. Year Model A Truck Model B Truck Purchase Price (beginning of year) $90,000 $60,000 Annual Operation and Maintenance (end of year) 1 $10,000 $20,000 2 $10,000 $20,000 3 $10,000 $20,000 4 $10,000 $20,000 The authority charges garbage collection fees from local residents. The estimated fee collection is $38,000 per year. Compare the present value of total costs of the truck model you choose and the present value of total revenues. Calculate the present value of total…

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SEE MORE TEXTBOOKS