Question

**Show work in Excel with formula** A proposed bridge on the interstate highway system is being...

**Show work in Excel with formula**

A proposed bridge on the interstate highway system is being considered at the cost of 10 million dollars. It is expected the bridge will have a life of 30 years. Construction costs will be paid by government agencies. Operation and maintenance costs are estimated to be 180,000 per year. Benefits to the public are estimated to be 900,000 per year. The building of the bridge will result in an estimated cost of 250,000 per year to the general public. The project requires a return of 5 percent.

Determine the benefit/cost (B/C) ratio.

0.78

1.08

0.01

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

EXCEL FORMULA:

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A toll bridge across the Ohio River is being considered as a replacement for the current...
A toll bridge across the Ohio River is being considered as a replacement for the current John F. Kennedy I-65 bridge linking Indiana to Kentucky at Louisville. Because this bridge, if approved, would become a part of the United States interstate highway system, benefit-cost analysis must be applied in the evaluation. Initial investment costs of the structure are estimated to be $18,000,000, and $475,000 per year in operating and maintenance costs are anticipated over its 30-year projected lifetime. In addition,...
0-7. A toll bridge across the Mississippi River is being considered as a replacement for the...
0-7. A toll bridge across the Mississippi River is being considered as a replacement for the current I-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B–C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be $17,500,000, and $325,000 per year in operating and maintenance costs are anticipated. In addition, the bridge must be resurfaced every fifth year of...
Imagine that you are the governor of Virginia and need to decide if you should support...
Imagine that you are the governor of Virginia and need to decide if you should support the “Super Bowl” highway and bridge construction project. The Super Bowl is estimated to take 5 years to complete. The project will require $150 million in construction materials per year and $75 million in labor costs per year in the first 2 years (i.e., 1st and 2nd years), and $130 million in construction materials per year and $90 million in labor costs per year...
During 2018, Crane Company purchased a building site for its proposed research and development laboratory at...
During 2018, Crane Company purchased a building site for its proposed research and development laboratory at a cost of $53,000. Construction of the building was started in 2018. The building was completed on December 31, 2019, at a cost of $460,000 and was placed in service on January 2, 2020. The estimated useful life of the building for depreciation purposes was 20 years. The straight-line method of depreciation was to be employed, and there was no estimated residual value. Management...
CASE STUDY HIGHWAY LIGHTING OPTIONS TO REDUCE TRAFFIC ACCIDENTS Background This case study compares benefit/cost analysis...
CASE STUDY HIGHWAY LIGHTING OPTIONS TO REDUCE TRAFFIC ACCIDENTS Background This case study compares benefit/cost analysis and cost-effectiveness analysis on the same information about highway lighting and its role in accident reduction. Poor highway lighting may be one reason that proportionately more traffic accidents occur at night. Traffic accidents are categorized into six types by severity and value. For example, an accident with a fatality is valued at approximately $4 million, while an accident in which there is property damage...
Can someone please provide the solutions. No explanation needed, just the answers so I can double...
Can someone please provide the solutions. No explanation needed, just the answers so I can double check my work.      2.   Firms with tangible long-term assets and less predictable cash flows, such as auto manufacturers and steel companies, whose sales vary with changes in economic conditions, tend to use a. a more nearly equal mix of long-term debt and shareholders’ equity financing. b. a greater amount of long-term debt [80%] than shareholders’ equity financing [20%]. c. a smaller amount of...
Near the Sawtooth Mountains in central Idaho, the town of Stanley is looking at developing its...
Near the Sawtooth Mountains in central Idaho, the town of Stanley is looking at developing its geothermal resources. In part, this is to make the long, cold winters pass a bit more comfortably (hot tubs for everyone!), but it intended to be the primary heating source for the town. Stanley isn’t very wealthy, so it's looking at developing the geothermal energy and paying for it over 30 years. At the end of 30 years, the system will be junk, worth...
1. A city with 4% unemployment and no inflation is considering building a new stadium for...
1. A city with 4% unemployment and no inflation is considering building a new stadium for its professional football team. The team currently plays in an old stadium owned by the city. If a new stadium were to be built, it would cost city $400M (M for million) to demolish the old one and build the new one. The new stadium would be expected to last for 40 years and the city would finance the costs of the project by...
Life is messy and deciding how to allocate capital resources is complicated. So, unlike the highly...
Life is messy and deciding how to allocate capital resources is complicated. So, unlike the highly simplified problems used in class (and in the online examples, homework, etc.), this is a more robust capital budgeting decision problem. Acme Manufacturing, Inc. was originally a family owned operation that has been in business for several generations. It has grown steadily and is now listed on the stock exchange with family members still owning a substantial portion of the shares. Over the years,...
Rio Negro, Inc. (RNI) is in the business of transporting cargo between ports in California and...
Rio Negro, Inc. (RNI) is in the business of transporting cargo between ports in California and Washington. Its fleet includes a small dry-cargo vessel, the Maracas. The Maracas is 25 years old and badly in need of an overhaul. It is March 2016, and Michael John, the finance director, has just been presented with a proposal that would require the one-time expenditures shown below in Table 1. If the proposal is accepted, these expenditures will be made in the next...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT