A new 2-lane road is needed in a part of town that is growing. At some point the road will need 4 lanes to handle the anticipated traffic. If the city's optimistic estimate of growth is used, the expansion will be needed in 3 years. For the most likely and pessimistic estimates, the expansion will be needed in 6 and 10 years, respectively. The expansion will cost $4.9 million. Use an interest rate of 7%. (a) What is the PW for each scenario, and what is the range of values?

A new 2-lane road is needed in a part of town that is growing. At some point the road will need 4 lanes to handle the anticipated traffic. If the city's optimistic estimate of growth is used, the expansion will be needed in 3 years. For the most likely and pessimistic estimates, the expansion will be needed in 6 and 10 years, respectively. The expansion will cost $4.9 million. Use an interest rate of 7%. (a) What is the PW for each scenario, and what is the range of values?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A construction firm needs a new small loader. It can be leased from the dealer for $5,500 per year for three years. This annual fee will include all maintenance. Or they can purchase the loader for $20,000. The firm expects it to have a salvage value of $7,000 after 7 years. The maintenance will be $500 the first year and then increase by $300 each year. The firm's interest rate is 12% per year. Compare the EUAC for leasing and buying the loader.
Suppose you are offered two options: (i) receive Taka 30,000 at the end of 5 years or (ii) receive Taka P today and another Taka P 2 year later. When you invest the P Taka in ecommerce it pays around 8% profit yearly. What value of P would be same as promise of Taka 30,000 after 5 years? Assume there is no risk in this future payment.
A graduating highschool student decided to take a year off and work to save money for college. The student plans to invest all money earned in saving account earing 6% interest, compounded quarterly. The student hopes to have $5000 by the time school starts in 12 months. How much money will the student have to save each month?
As a rental for a building, the owner received two offers:(A) P50000 a year for 8 years, the rental for each year paid at the start of the year(B) P30000 the first year, P40000 the second year, P50000 the third year, and P60000 forthe next 5 years with all rentals paid at the beginning of each year.If money is worth 12%, which is the better offer?
The incomes for a business for 5 years are as follows: $8250, $12,600, $9,750, $11,400, and $14,500. If the value of money is 8%, what is the equivalent uniform annual benefit for the 5-year period?
Fast pls solve this question correctly in 5 min pls I will give u like for sure Svtrik An early payment of $4574.73 was accepted instead of a scheduled payment of $4850.00, allowing for interest at the rate of 8.75%. How many days early was the payment? (The answer is 251 days early but not sure how to get that answer)
4. An investment generates an annual income of $200,000 with a salvage value of $2,000,000 in 10 years. If the interest rate is 10% per year, how much should one pay for it now?
Please Solve In 15mins e-h
eBook A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $19,000, but these costs are expected to increase by 5% annually. The college requires total payment at the start of the year. She now has $10,000 in a college savings account that pays 8% annually. Her father will make six equal annual deposits into her account; the first deposit today and sixth on the day she starts college. How large must each the six payments be? (Hint: Calculate the cost (inflated at 5%) for each year of college and find the total present value of those costs, discounted at 8%, as of the day she enters college. Then find the compounded value of her initial $10,000 on that same day. The difference between the PV of costs and the amount that would be in the savings account must…
Calculate APS when the value of savings is 250 and income is 800 (b) Can APS be greater than 1?
A company is organizing a project to build housing units with an estimated investment of one million Million dollars to build (100 houses) The price of the house (20) thousand dollars Payable in unequal installments for (4 years), the first installment is 40% of the price of the house, the second installment is 30%, the third installment is 20%, the fourth installment is 10%, estimated The annual costs are (50) thousand dollars. Calculate the rate of return simple, payback period, and internal rate of return Knowing that the minimum discount rate (8%) and the highest (12%) and whether the project is accepted or rejected.
A gamer decides to buy the latest state-of- the-art gaming laptop. The gamer sets aside a value of USD 15,000 per month for all of his wants. Given his budget, the gamer can afford to buy a gaming laptop for a down payment of USD 8,000 and a monthly annuity with a value not exceeding 40% of his "WANTS Budget". If the gaming laptop seller agrees to the down payment value, and the balance payable in 5 years at 20% per year payable on a monthly basis, what is the maximum price of the gaming laptop he can afford to purchase?