The following data is provided for a PPP project. To the People To the Government $1.8 million now and $200.000 every 3 years $12d000 per year Benefits $95,000 per year beginning now Cost Disbenefits $35.000 per year Savings Calculate the modified benefiticost ratios using an interest rate of 10% per year and an infinite project period. The modified B/C ratio is 0.7882
Q: If $500 is deposited in a savings account at the beginning of each year for 15 years and the account...
A: * SOLUTION :-
Q: “The Security Market Line is flatter than the ‘Capital Asset Pricing Model’ (CAPM) would predict.” ...
A: The security market line (SML) is a pictorial depiction of the capital asset pricing model (CAPM), w...
Q: If the Fed lowers the federal funds rate so that the exchange rate falls, then imports ________ and ...
A: The fall in the exchange rate implies the fall in the value of currency or depreciation of currency ...
Q: $3,300 $8 $2,400 $2,400 1. 2 4. End of Year
A: The cash flow means to the net amount of cash flow(cash equivalent) is transferred in and out from a...
Q: III. A monopolist faces the demand curve Q = 500 – P, where Q is the output of the firm and Pis the ...
A: Lets us first find out the inverse demand function Demand Function = Q = 500 - P Inverse Demand Func...
Q: Could the marginal rate of substitution be 5 at point C? Justify your answer
A: Optimal choice - It is the best combination of goods which will lead to the best satisfaction of the...
Q: Y = F(K, L) = AKªL^-« %3D A = 1, K = 3000, L = 9000 a = 0.6 |= |(r) = 1200 – 10r %3D C = C (Y-T) = 0...
A: a. Y=AKαL1-αY=1 x 30000.6 x 9000(1-0.6)Y=4647.44Now,Y=C+I+G4647.44=0.75(4647.44-800)+1200-10r+600464...
Q: Assume a Ricardian, constant-cost world. There are two countries, the United States and Canada. Each...
A: The Ricardian model implies that two nations produce two things using just one element of the produc...
Q: Decide if it is an increase (right shift) or a decrease (left shift) and write that next to the ques...
A: In a market, any change in technology will have a significant impact on the supply of output because...
Q: The demand curve is also the ... O A. total benefit curve. B. total cost curve. C. marginal deadweig...
A: The quantity of an item that consumers are willing and able to acquire at various prices during a ce...
Q: Ceteris paribus, if the market demand for a product increases, what will happen to the equilibrium q...
A: Let's assume the simple market demand and market supply graph shown below.
Q: The R J smith corporation is a publisher of romance novel. The corporation hires an economical to de...
A: Determinants of Demand: The demand for a commodity depends upon various factors, which are known as ...
Q: A man wishes to have P35,000 when he retires 15 years from now. If he can expect to receive 4% annua...
A: Formula for future value of annuity due is as follows, F = (1 + r) * A * [{(1 + r)n - 1} / r]
Q: As you can see from the article in the prior problem, "Rents Hit All-Time Highs amid Job Growth and ...
A: Solution:- ▪︎ Find that the initial equilibrium price = 1500, equilibrium quantity = 500 Now, rent ...
Q: The president of a growing firm wishes to give each of 13 employees a holiday bonus. How much is nee...
A: We use the following formula, F = C [ { (1+i)n - 1 } / i ] (1+i)
Q: Table 2 Shows Media Cable’s demand table, total revenue, and marginal revenue at each price. Why, at...
A: Answer: Total revenue: total revenue is calculated by multiplying the price and quantity. Marginal ...
Q: briefly explain bibliographical analysis.Give one example o
A: In economics, the analysis of data gives an important insight, and that is used by the government or...
Q: In the mean-standard deviation graph, the line that connects the risk-free rate and the market portf...
A: I have solved the questions below using CAPM
Q: Country Z has a fixed exchange rate policy and its own currency. Country Z experienced an inflation ...
A: Given information Inflation in country Z= 27% Price index increased only by 3% for the trading partn...
Q: Your firm has determined they use the following production function: q = E°K Assume the current wage...
A:
Q: A company has a linear total cost function and has determined that over the next three months it can...
A: Linear Cost function refers to the cost function with degree 1. For eg: (aQ + c) is a linear cost fu...
Q: n the Week 1 Discussion (also known as a small business scenario), you develop a specific business g...
A: The perfectly competitive market characterized by the presence of many buyers and sellers. The infor...
Q: (b) AVILA Construction Sdn Bhd plans to buy a new truck crane. There are THREE (3) alternative brand...
A: We need to calculate, (i) Cash-flow diagram for each machine. (ii) Using private project evaluation ...
Q: c. If the firm is currently producing 10 bags of snacks, what is the opportunity cost per-unit gain ...
A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods ...
Q: In a competitive market, what must a firm do in order to be successful? What happens to firms that f...
A: Answer: Introduction: In perfectly competitive markets all the firms supply identical goods. Buyers ...
Q: estion 15 Suppose the public holds no cash, & all banks hold no excess reserves. The total money sup...
A: The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rat...
Q: Shen has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransfe...
A: Shen has a $10 nonrefundable, nonexchangeable, and non-transferable movie ticket. Now Valerie, whom...
Q: the MPS in an economy is 0.25, government could shift the aggregate demand curve leftward by $60 bil...
A: The multiplier value will decide actual level of change expenditure to produce certain effects.
Q: Joe and his daughter Ally finally have something in common. They both just quit their jobs. Econom...
A: Unemployment: Unemployment is an economic situation in which all those individuals who are actively ...
Q: What are the ways by which you either contribute to the conservation of natural resources or partic...
A: Natural resources are all those objects which have occurred naturally in the earth’s environment. Th...
Q: 4. (a) Profit-maximizing price must equal p = S MC, where e is the price elasticity of demand. What ...
A: 4(a) As per the rule of profit maximization we have marginal revenue (MR)= marginal cost (MC) MR=MCo...
Q: A firm will most likely decide to decrease production, if its OA. MC>0. O B. MR> MC. OC. MR <MC. O D...
A: A profit-maximizing firm operate at the point where its marginal cost is equal to marginal revenue.
Q: What is the pront hiring workers whose wages exceed the added production? WHat wages are value of th...
A: At market equilibrium demand and supply are equal at certain wage rate. And minimum wage rate is t...
Q: Deshaun invested his savings in two investment funds. The amount he invested in Fund A was 3 times a...
A: Profit is the difference between revenue and cost . Or in the others words it is a return on investm...
Q: A consumer with a fixed income will maximize utility when each good is purchased in amounts such tha...
A: The total satisfaction that is being derived by the consumer from the consumption of a specified goo...
Q: Which of the following is a typical example of a variable cost of production in a business firm? A....
A: Variable Cost is that cost which keeps on changing with the change in the level of output.
Q: Which is characteristic of a product with elastic demand? A. The good is regarded by consumers as a...
A: Demand is inelastic for products which have no close substitutes eg tobacco.
Q: 6. Sarah likes food, z and clothing, y and has the following utility function: U(x,y) = 2x!/2y}/2. T...
A:
Q: What is Molly’s optimal bundle of consumption?
A: The measure that depicts the satisfaction or benefit that is being gained from the consumer from the...
Q: Suppose the price of a product increases from $12 to $20 and the quantity demanded falls from 55 a w...
A: Price elasticity of demand measures the sensitivity of the quantity demanded in response of a change...
Q: Total demand for Canadian soybeans is: Q 1000 - 50P. Soybeans are used in Canada and also exported. ...
A: Here the total demand is included export and domestic demand . To find the total demand we need to ...
Q: explain why spacex has the characteristics of a monoply structur
A: The markets are the place where the economic transactions between the buyers, and sellers takes plac...
Q: 2. Effects of a tariff on international trade The following graph shows the domestic supply of and d...
A: Answer: (1). Import: import refers to the difference between the quantity demanded and the quantity...
Q: Suppose that pig farming in a region is a perfectly compet- itive industry. However, one negative co...
A: In the above question, it is given that : Suppose that pig farming in a region is a perfectly comp...
Q: 3. The Ocean Spray juice company on Cape Cod has developed a new piece of machinery that can bottle ...
A: Supply is a fundamental economic concept that describes the total amount of a specific good or servi...
Q: 2. In an effort to encourage economic growth, the United States government has cut corporate income ...
A: Law of Supply: There exists direct relationship between price and quantity supplied keeping other fa...
Q: Problem 3 You found your utility preference given by U(w, d) = ", where w is your wage, and d is the...
A:
Q: what are the three main credit bureaus? They should explain how each one works and how they are diff...
A: This chapter is related to credit bureau. Credit bureau, also known in the US as credit reporting ag...
Q: Using the formula for present worth (1+n)t In how many years will $10000 accumulate to $25000 at 18%...
A: Here we calculate the number of year by using the given formula and information , so the calculation...
Q: Year GDP Per Capita Population Capital Labor Education 1960 1,224.79 40,818.61 24.749 208,509.8 11,1...
A: With the given information, we calculate GDP= GDP Per Capita* Population and GDP Per Worker= GDP/...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A proposal to reduce traffic congestion on Jounieh Highway has a B/C ratio of 1.4. The annual worth of benefits minus disbenefits is $560,000. What is the first cost of the project if the interest rate is 5% per year and the project is expected to be perpetual?* 4,000,000 4,588,208 8,000,000 6,666,667Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 9% per year to determine which location to select, if any. Location Initial Cost, $ Annual Cost, $ per Year Disbenefits, $ per Year Life, Years The AB/C ratio is North N 2,160,000 480,000 70,000 00 South S 2,900,000 445,000 57,000 00In a modified B/C ratio:a. disbenefits and M&O costs are subtracted from benefitsb. disbenefits are subtracted from benefits, and M&O costs are added to costsc. disbenefits and M&O costs are added to costsd. disbenefits are added to costs, and M&O costs are subtracted from benefits
- The following estimates (in $1000 units) have been developed for a new security system at Chicago's O'Hare Airport. First cost, S 13,000 AW of benefits, $/year FW (in year 20) of disbenefits, $ M&O costs, $/year 3,800 6,750 400 Life of project, years 20 a. Calculate the conventional B/C ratio at a dis- count rate of 10% per year. b. Determine the minimum first cost necessary to make the project economically unjustified.The two alternatives shown are under consideration for improving security at a county jail in Travis County, New York. Determine which one, if either, should be selected based on a B/C analysis, an interest rate of 7% per year, and a 10-year study period. Extra Cameras (EC) New Sensors (NS) 38,000 87,000 49,000 84,000 100,000 87,000 16,000 First cost, $ Annual M&O. $ per year Benefits, $ per year Disbenefits, $ per year The B/C ratio is Select alternative (Click to select)N5 The following data is provided for a PPP project. To the People To the Government Benefits $130,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years Disbenefits $45,000 per year Savings $90,000 per year Calculate the conventional benefit/cost ratios using an interest rate of 6% per year and an infinite project period.
- Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 6% per year to determine which location to select, if any. Location North, N South, S Initial cost, $ 1.1 × 106 2.9 × 106 Annual cost, $ per year 480,000 390,000 Disbenefits, $ per year 70,000 40,000 Life, years ∞ ∞Using the incremental B/C analysis (AB/C). Determine the best alternative, i=10% First cost O &M Cost/year Benefit/year Salvage value Life in years A 45,000 $4,000 $15,000 $9,000 B $25,000 $1,500 $9,500 $5,000 10 с $35,000 $3,000 $14,000 $7,000 D $15,000 $2,000 $8,000 $3,000The two alternatives shown are under consideration for improving security at a facility. Determine which one should be selected, if any, based on a B/C analysis. Consider an interest rate of 7% per year and a 10-year study period. Additional information is provided in Table Q 6(b). Page 4 of 5 Table Q 6(b) Alternative 1: Extra Cameras | Alternative 2: New Sensors First cost, $ Annual O&M cost, $ 38000 87000 49000 64000 Annual benefits, $ Annual disbenefits, $ 110000 160000 26000
- From the PW, AW, and FW values shown, the conventional B/C ratio is closest to: (а) 1.27 (b) 1. 33 (c) 1.54 PW, $ AW, $/Year FW, $ First cost 100,000 16,275 259,370 M&O cost 68,798 11,197 178,441 (d) 2. 76 Benefits 245,784 40,000 637,496 (e) Any of the above Disbenefits 30,723 5,000 79,687 a b d eLocations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 11% per year to determine which location to select, if any. Location North N South S Initial Cost, $ 1,360,000 2,900,000 Annual Cost, $ per Year 480,000 365,000 Disbenefits, $ per Year 70,000 24,000 Life, Years The AB/C ratio is Select location NThe B/C ratio for the following cash flow estimates calculated at an interest rate of 10% is .89, which means that the project is currently not justified. What would the maximum first cost be for this project to be justified? Item PW of benefits, $ AW of disbenefits, $/year First cost, $ M&O costs, $/yr Life, years Estimate 3,800,000 45,000 1,200,000 310,000 20 775,723 140,952 863,993 1,092,000