For a project being considered by a city, the following cost data is available. (a) Determine both the modified and conventional B/C ratios and offer a recommendation, and (b) if you are concerned because the data is not capturing the effects of Estimated annual disbenefits, how large would these have to be in order for you to change your recommendation (if at all) using the conventional B/C ratio
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The question is incomplete. The complete question is :
For a project being considered by a city, the following cost data is available. (a) Determine both the modified and conventional B/C ratios and offer a recommendation, and (b) if you are concerned because the data is not capturing the effects of Estimated annual disbenefits, how large would these have to be in order for you to change your recommendation (if at all) using the conventional B/C ratio?
Initial cost = $10,000,000
O & M cost / year = $450,000
Estimated annual benefits = $850,000
Life = 25 Years
Salvage value = $1 million
MARR = 6%
Solution :
Given :
Initial cost = $10,000,000
Salvage, S = $1,000,000
O and M Cost/year = AOM = $450,000
Benefit per year, AWB = $ 850,000
Equivalent initial cost per year = C
Equivalent salvage per year = S x (A/F, 0.06, 25) = 1,000,000 x (A/F, 0.06, 25)
Let us calculate the interest factors,
\($(A/P,i,n)=\frac{i}{1-\frac{1}{(1+i)^n}}$\)
\($(A/P,0.06,25)=\frac{0.06}{1-\frac{1}{(1+0.06)^{25}}}=0.078226718$\)
\($(A/P,i,n)= \frac{i}{(1+i)^n-1}\)
\($(A/P,0.06, 25)= \frac{0.06}{(1+0.06)^{25}-1} = 0.018226718\)
The equivalent initial cost per year = AWC = 10000000 x 0.078226718 = $ 782267.18
Equivalent salvage per year, AWS = 1,000,000 x 0.018226718 = $ 18226.72
Conventional B-C ratio = AWB/(AWC-AWS+AOM)
= 850000/(782267.18-18226.72+450000)
= 0.7001
Modified B-C ratio = (AWB-AOM)/(AWC-AWS)
= (850000-450000)/(782267.18-18226.72)
= 0.5235
In this case. both the conventional B-C ratio and modified B-C ratio are less than 1, the project is not acceptable.
Related Questions
help please!!
39. When a business collapses, only those who work directly for the business are impacted.
True
False
Answers
Answer:
I can't say 100% but I am pretty sure it is false because anyone who works hand in hand with the business will also be affected as well as people that have like invested in it or etc so I'd have to say false.
also I love your pfp :p
Job-costing and process-costing are mutually exclusive, hence a hybrid costing system that combines elements of both job and process costing cannot be used.
Please explain your perspective.
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Answer: Increase Profitability. Avoiding Exceeding Project Budgets. Improve Customer Satisfaction. Turn Project Insights Into Meaningful Action. Better Data. Better Outcomes. Better Profit. Batch Invoicing. Capture Time & Expense. Rapid Entry Time Card. Automatic Billing.
Explanation:Avoiding Exceeding Project Budgets. Improve Customer Satisfaction. Turn Project Insights Into Meaningful Action
cr Entries during the pecember 2018: tra der 31 during the half-year Payments to Accounts Cheques from credit customers purchases on credit Sales on credit ended payable = 93685 119930 95580 12H 600
Answers
During December 2018, the company made payments to accounts, received cheques from credit customers, made sales on credit, and had an ending accounts payable balance of $12,600.
In December 2018, the company recorded various transactions related to accounts receivable and accounts payable. The half-year payments to accounts amounted to $93,685, indicating that the company settled outstanding balances with its creditors during this period.
Additionally, the company received $119,930 in cheques from credit customers, representing payments made by customers for their purchases on credit.
Furthermore, the company made credit sales amounting to $95,580 during this period. These sales were made to customers who would pay at a later date, resulting in an increase in accounts receivable. At the end of the month, the accounts payable balance stood at $12,600, representing the outstanding payments owed by the company to its suppliers and creditors.
In summary, during December 2018, the company made payments to accounts, received cheques from credit customers, made sales on credit, and had an ending accounts payable balance of $12,600. These transactions reflect the financial activities related to accounts receivable and accounts payable during that period.
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There are three different types of business ownerships: Sole Proprietorship, Partnerships and Corporations. Explain why different types of businesses exist, and why a business might choose one type of ownership over the other
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Different types of businesses exist to accommodate varying needs, goals, and circumstances of entrepreneurs and business owners. The choice of business ownership is influenced by several factors, including liability, taxation, management structure, and long-term business objectives.
Sole Proprietorship:
A sole proprietorship is the simplest form of business ownership, where a single individual owns and operates the business. This type of ownership may be preferred for the following reasons:
Ease of formation: Sole proprietorships are easy and inexpensive to set up compared to other types of ownership structures.
Complete control: The owner has full control over decision-making and business operations.
Tax advantages: Sole proprietors can benefit from certain tax advantages, such as reporting business income on their personal tax return and potentially offsetting losses against other income.
Partnerships:
Partnerships involve two or more individuals who come together to carry out a business venture. Partnerships offer the following advantages:
Shared responsibility and expertise: Partners can contribute different skills, resources, and expertise to the business.
Shared risk and liability: Partnerships distribute the business's risks and liabilities among the partners, which can provide a level of protection for individual partners.
Flexibility: Partnerships can be relatively easy to establish and dissolve, providing flexibility for collaboration on specific projects or ventures.
Corporations:
Corporations are separate legal entities distinct from their owners/shareholders. They are often chosen for the following reasons:
Limited liability: Shareholders' personal assets are generally protected from the corporation's debts and liabilities, limiting personal risk.
Access to capital: Corporations can issue shares of stock to raise funds and attract investors. This makes it easier to access capital for growth and expansion.
Perpetual existence: Corporations can continue to exist even if the ownership or management changes, providing stability and continuity.
It's important to note that each business structure has its own advantages and disadvantages, and the choice depends on the specific circumstances, goals, and preferences of the business owners. Consulting with legal and financial professionals can help entrepreneurs make informed decisions about the most suitable business ownership structure for their particular situation.
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Which of the following statements is not true about a short sale? multiple choice question. with a short sale, the order is reversed. first, you sell and then you buy the shares. you begin and end with no shares. a short sale allows investors to profit from a decline in a security's price. the short-seller anticipates the stock price will go up, and the shares will be purchased later at a lower price than it initially sold for. short-sellers must not only replace the shares but also pay the lender of the security any dividends paid during the short sale.
Answers
Out of the given statements, ''the short-seller anticipates the stock price will go up, and the shares will be purchased later at a lower price than it initially sold for,'' is not true regarding a short sale. Therefore, the option D holds true.
A short sale can be usually taken into the understanding as a market order wherein the person sells shares in the first place in an anticipation that the prices will further go down. And thus, when the prices go down, he or she buys the shares, and the difference in price decrease represents the profit earned by the investor.
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please write what your own impressions are of “What does the term Marketing mean to you”
Answers
Marketing refers to the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society as a whole.
What is marketing ?Marketing is a fundamental component of any business as it entails recognizing customers' desires, producing and advertising items or services that suit those preferences while cultivating connections with them to warrant their ongoing contentment and patronage.
Furthermore, marketing plays a crucial role in understanding customers and devising commodities that fulfill their needs. Additionally, it facilitates companies to promote their products, raise brand recall, distinguish themselves from other firms operating within the same market sector.
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Verizon Wireless recently ran a pricing trial to estimate the elasticity of demand for its services. The manager selected three states that were representative of its entire service area and increased prices by 5% to customers in those areas. One week later, the number of customers enrolled in Verizon’s cellular plans declined 4% in those states, while enrollments in states where prices were not increased remained flat. The manager used this information to estimate the price elasticity of demand for Verizon and, based on her findings, immediately increased prices in all market areas by 5% in an attempt to boost the company’s 2020 annual revenues. One year later, the manager was perplexed because Verizon’s 2020 annual revenues were 10% lower than those in 2019: the price increase apparently led to a reduction in the company’s revenues.
Did the manager make an error? Explain.
Answers
Yes, it is likely that cell phone elasticity is considerably greater in the long run than in the short term.
How do cell phones work?
A cellular phone is a type of telecommunication that uses radio waves to send calls over networked areas (cells) and is supported by a base station or cell site at a fixed location. This allows calls to be transmitted wirelessly over long distances to fixed landlines or the Internet.
In this networked system, a cell phone is recognized as a mobile system made up of the hardware and SIM card that actually allows a mobile phone number. Cellphone, mobile phone, and cellular are other terms for cellular phones.
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A refrigerator costs $800 on an installment plan that requires a down payment of $140 and monthly payments for 12 months. What are the monthly payments of the plan?
Answers
The reasoning for this would be that after taking out the $140 down payment from the $800 would leave you with $660 once you get that number you divide it by 12. Which would give you your monthly payment of $55 per month.
4 "Youth culture" is a term that marketers use when they are trying to sell their product to which group?
children between the ages of 1-5
children between the ages of 6-10
teenagers
college students
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As a result of 5G networks and edge computing, there will be an increasing
number of different internet-connected devices with specialized functions.
Which term is used to describe this?
Answers
The term used to describe this is the "Internet of Things" (IoT).
What is the Internet of Things?The Internet of Things refers to the network of physical devices, vehicles, appliances, and other items embedded with sensors, software, and connectivity which enables them to connect and exchange data with other devices and systems over the internet.
With the advancements in 5G networks and edge computing, it is expected that the number of IoT devices will continue to grow, allowing for greater interconnectivity and efficiency in various industries and applications.
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Consider the following data representing the price of laptop computers (in dollars).
1365, 1240, 1371, 1052, 1238, 1293, 1043, 1393, 1416, 1035, 1092, 1428, 1288, 1175, 1098, 1083, 1313, 1300, 1060, 1120, 1116
Determine the class width of the classes listed in the frequency table.
Answers
Answer:
The class width is calculated by subtracting the lowest value from the highest value in the given data set. In this case, the lowest value is 1035 and the highest value is 1428, so the class width is 1428 - 1035 = 393.
Explanation:
TGrills has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock repurchase is completed?
Answers
The stock price per share after the stock repurchase is completed is approximately $20.69.
Market value per share after the stock repurchase: $20.69 Explanation: Here are the given values: Current market value of equity = $10,665.
Excess cash = $640.
Total assets = $22,400.
Net income = $3,210.
Number of shares of stock outstanding = 500.
To find the stock price per share after the stock repurchase is completed, we need to find the market value per share after the repurchase.
We can find this value using the following formula: Market value per share = (Market value of equity – Excess cash) / Number of shares of stock outstanding.
We are told that the firm is going to use all of its excess cash to repurchase shares of stock.
Therefore, we can calculate the market value per share after the repurchase as follows: Market value per share = (Market value of equity – Excess cash) / (Number of shares of stock outstanding – (Excess cash / Market value per share)) We can substitute the given values into this equation: Market value per share = (10,665 – 640) / (500 – (640 / Market value per share)) Multiplying both sides by the denominator: Market value per share × (500 – (640 / Market value per share)) = 10,025
Market value per share × 500 – 640 = 10,025
Market value per share × 500 = 10,665
Market value per share = 10,665 / 500
Market value per share = $21.33
Now that we know the market value per share before the repurchase, we can calculate the market value per share after the repurchase by subtracting the excess cash from the market value of equity, and dividing by the number of shares of stock outstanding after the repurchase: Market value per share after the repurchase = (Market value of equity – Excess cash) / (Number of shares of stock outstanding – (Excess cash / Market value per share before the repurchase)) Substituting the given values: Market value per share after the repurchase = (10,665 – 640) / (500 – (640 / 21.33)) Market value per share after the repurchase = 10,025 / (500 – 30.02) Market value per share after the repurchase = 10,025 / 469.98 Market value per share after the repurchase ≈ $20.69
Therefore, the stock price per share after the stock repurchase is completed is approximately $20.69.
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The CPI for this year was reported at 163.65. If inflation was 3.1 percent, what must the CPI have been last year
Answers
The consumer price index last year must have been 158.58.
What was the consumer price index last year?
The consumer price index is used to measure inflation. It does this by measuring the changes in the price of a basket of good.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
CPI last year = (100 - 3.1) x 163.65 = 158.58
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An accounting system that accumulates and reports costs incurred by each service department for management to evaluate the performance of a department is a:
Answers
Answer:
Departmental accounting system
Explanation:
Departmental accounting system is the system that record all the activities and financial information related to department. The company managers use this financial information from departmental accounting system to check the overall profitability of the department.
Which of the following statements is true of the international business strategy of licensing?
Answers
It allows a firm to enter a foreign market with relatively little risk. The following statements are true of the international business strategy of licensing.
What is business?An innovative company or group that engages in professional activities is referred to as a business. They could be industrial, commercial, or something else. Businesses that are for-profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.
An international business of licensing refers that the agreement. That has involved the two firms from different countries, The rights or resources are manufactured in foreign countries. The resources and rights may include patents.
Therefore, The statement is absolutely true. About The international business strategy of licensing.
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When the company prepares a bank reconciliation, the outstanding checks are subtracted from the bank statement balance in order to determine the correct or adjusted bank balance. There is no need for the company to write a journal entry, as the checks were recorded in the company's general ledger account when the checks were written.
Answers
In a bank reconciliation the outstanding checks are a deduction from the bank balance (or balance per the bank statement).
How do you define a bank?Bank, a business that deals with money and its alternatives and offers various services involving money. A bank collects deposits and disburses loans in its capacity as a financial middleman.
What are different types of banks?A bank is a type of financial institution with permission to accept deposits and issue loans. Banks come in a variety of forms, such as retail, commercial, and investment banks. In the majority of nations, the national government or central bank oversees bank regulation.
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What are the four core principles in business?
Answers
Answer:
Honesty ,Integrity, Promise-Keeping & Trustworthiness, Loyalty
Explanation:
there are many principles related to business. but basic principles of business are Honesty ,Integrity, Promise-Keeping & Trustworthiness, Loyalty. A person must be honest and loyal in his business. A person must fulfill his promises to citizens . A person should lie to his business handlers and users.
I am wondering what the answer to question number 4 is thank you!
Answers
Answer:
the answer is thank you because you said it
Explanation:
DUH=)
You have 24 cups of milk.
You need 1.25 cups to make one serving of deep-fried chicken.
How many servings can you make? Whole servings only - round down
rather than using partial servings.
Answer:
to make a servings of roast beef gravy.
Answers
Answer:
19.2 serving
Explanation:
Because if you have 24 cups of milk and need 1.25 cups to make 1 serving we would have to divide.
24 cups of milk - 1.25 cups of milk per serving = 19.2
An employer's defense to an employment discrimination claim might include a simple demonstration that the employee's evidence is not true. This defense might include all of the following except
Answers
An employer's defense to an employment discrimination claim might include a simple demonstration that the employee's evidence is not true. This defense might include all of the following except "the employee is a known liar".
What is a defense in law?
A defendant may establish a defense in a civil case or criminal prosecution under common law or legislation in order to avoid civil responsibility or criminal guilt.
What is Evidence?
The evidence for a proposition is what backs up that assertion. It is commonly seen as proof that the supported statement is correct. The function of evidence and how it is conceived differs by discipline.
How can a lie be detected during a legal proceeding?
The polygraph is the most well-known tool for detecting deceit through psychophysiological means.
All of these strategies are designed to identify deceit by evaluating indications of changes in the body that are ordinarily undetectable by human inspection.
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When John asked Melanie to babysit Saturday night, he told her that he would pay $7 per hour. She accepted and did the work but has not yet received the money. What type of contract was this
Answers
Answer:
Bilateral contract
Explanation:
I got it right on Edmentum :)
Samantha has the following assets and liabilities. What is her net worth?
Assets
car - $4,200
savings account - $200
cash - $20
Liabilities
car loan - $1,500
credit card - $100
Answers
$4,200 + $200 + $20 - $1,500 + $100
$4,820 - $1,600
= $3,220
Net worth = $3,220
if we consider Airbnb to be new entrant into the hospitality short stay vacation industry. according to Porter's Five forces, how attractive is this industry? What might be particularly difficult for a new startup
Answers
The entrance of Airbnb into the hospitality short stay vacation will be attractive but there are some market threats that need to be effectively managed.
What is the Porter's Five forces?These forces are economic force that determines the competitive intensity and attractiveness of a market.
According to Porter, the Five forces in the every market includes::
threat of new market players,threat of substitute products,power of customers, power of suppliers, industry rivalryIn conclusion, the hospitality firm needs to evalute the forces to understand the industry structure and to determine the best corporate strategy for its operation.
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while shopping grey spend 90% of the money she had if she has $4,500 on shopping what was amount of money spent
Answers
Answer:
$4,050
Explanation:
Grey has $4,500 for shopping.
She spent 90% while on shopping.
The amount spent = 90/100 x $4500
=0.9 x $4,500
=$4,050
Which company provides the best Azure Consulting Services in USA?
Answers
Answer: Microsoft 365 - Compliance.
Which of the following statements accurately describes how an event will impact supply? Choose 1 answer: Choose 1 answer: (Choice A) A An increase in costs of production will cause an increase in the supply curve (Choice B) B An increase in demand will cause an increase in supply (Choice C) C An increase in price will cause supply to increase (Choice D) D A decrease in price will cause supply to increase (Choice E) E A decrease in resource costs will cause an increase in the supply curve
Answers
The statement that accurately describes how an event will impact supply is option B An increase in demand will cause an increase in supply.
What happens when supply and demand both rise?If demand and supply both rise, more will be purchased by consumers and more will be produced by businesses. The impact on price will, however, depend on the relative amount of the two changes because consumers place a higher value on each unit while producers are willing to supply each unit at a lower price.
Therefore, With everything else remaining the same, an increase in demand will result in a rise in the equilibrium price and an increase in supply. Reduced demand will result in a drop in the equilibrium price and a reduction in supply.
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"Do “rules of the game” promote or prevent opportunism?"
Answers
Answer:
Prevent opportunism
Explanation:
Rules of game prevent opportunism, it breaks the chances of mocks and give proper direction to reach final goal.
A firm with few subunits is said to have a low level of _____.
Answers
Any firm with few sub-units is said to have a low level of subsidiary activities.
What is the meaning of subunits?
In business, a subunits refers to an organization that is a subsidiary, division or a unit of a larger parent organization.
In conclusion, any firm with few sub-units is said to have a low level of subsidiary activities.
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What is the term for the type of market test that involves selecting an area of the country as a representative sample of the nation's demographics to try out a new product?
Answers
Test marketing is the term for the type of market test that involves selecting an area of the country as a representative sample of the nation's demographics to try out a new product.
What is the name of market research in science?A product or marketing campaign is made restrictedly accessible to test markets before being made widely available to measure consumer response. It's crucial to keep in mind that consumers of the product or target audience for the marketing initiative could unintentionally act as test subjects.
What are some sales forecasting test marketing techniques?Test-marketing analysis is regarded by many businesses as the most accurate way to predict future sales. It entails introducing a good or service to a certain target market or demography depending on your market segmentation. Organizations can then see how the product is received by customers and how it sells.
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case study on sustaining customers
Answers
Answer:
http://fernfortuniversity.com/hbr/case-solutions/14933-sustaining-customer-centricity-at-.php
Explanation:
theres one there :/