city plans to upgrade its storm water management infrastructure by installing new pes. The installation costs 2.7 million dollars and the annual maintenance cost is 7,000. Every 8 years, the system needs to be fully examined which requires a fix anagement and material cost of $20,000 and a variable labor cost at the rate of $ full time (working 8 hours per day) workers will be employed for 80 days for this che infrastructure has a life time of 96 years and the city's interest rate is 7%, lease round your answer to two decimal places at the million level for both estions, e.g. '1.23' millions) what is the capitalized worth of the project (in millions)? Please note that the val
Q: What is the balance due on the water tower? $ b) How much will the village need to invest at this…
A: Present Value: It represents the present worth of the future sum of the amount and is computed by…
Q: A security systems company have been hired to install a system for a city's bank. The city council…
A: Data given: Installation Cost = $40000 Operation Cost = $1000 and increases by $300 each year…
Q: The Transportation Service Directorate of a Municipality wants to purchase a new software system to…
A: Capitalization cost means total cost incurred in the project or investment. Some part of the cost…
Q: 5 During the construction of a highway bypass, earth- moving equipment costing $40,000 was purchased…
A: A fixed asset is a non-current asset acquired by a business entity to be used for a longer period of…
Q: A city engineer must find the capitalizd cost of perpetual service from a water plant. A storage…
A:
Q: Five years ago a chemical plant invested $90,000 in a pumping station on a nearby river to provide…
A: EUAC: It is the annual cost of running & operating a project.
Q: A village recently completed the construction of a new water tower. The entire cost of the water…
A: The equal payment flow which occurs for a finite period and ends after lapse of finite time period…
Q: Burling Water Cooperative currently contracts the removal of small amounts of hydrogen sulfide from…
A: Replacement decisions are taken based on the present value of all the cash flows during the life of…
Q: An Engineer makes the following cost estimates for each: A: Concrete Bleachers: First cost,…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: The landfill for Wellsburg has an area of 30 acres available for receiving waste from the city of…
A: At break-even, the total revenues are equal to the total costs. Also, Break even units = Fixed costs…
Q: The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled…
A: Given: Cost for First 4 years = $1.8 million Cost for 5th year = $1.77 million Cost for 6th year =…
Q: A city engineer must choose between two different routes for a new sewer line. Route 1 is a…
A: first cost ($) = Digging cost + Non digging cost. (250x 8,000) + (80 x 12,000) 2,000,000+ 960,000 =…
Q: A bulk-water supplier has been awarded by a city to supply their potable water for the next 10…
A:
Q: A state government is considering construction of a flood control dike having a life span of 15…
A:
Q: An amusement park is considering installing an outdoor ice-skating rink, which costs $950,000.…
A: Long term investments are done before making a proper profitability analysis. This is called as…
Q: A city has decided to build a sofiball complex, and the city council has already voted to fund the…
A: Computation: Assume the ticket price is ‘a’.
Q: A city government is considering two types oftown-dump sanitary systems. Design A requires aninitial…
A: The relation between the relative cost and benefits of the various investment proposals are analyzed…
Q: Perform a spreadsheet-based AW evaluation of the three proposals shown. Note that the lives vary…
A: AW Analysis The equivalent uniform AW of all the income as well as the disbursement costs during the…
Q: To decrease the costs of operating a lock in a large river, a new system ofoperation is proposed.…
A: There are a number of different pieces that are in play that must be factored in and be properly in…
Q: A bulk-water supplier has been awarded by a city to supply their potable water for the nex city will…
A: Cost and benefits are important for any project and must be sufficient to carry the project and pay…
Q: A city government adds street lights within its boundaries at a total cost of $300,000. The lights…
A: Prepare journal entry when street lights are recorded as assets.
Q: A city water and waste-water department has a four-year-old sludge pump that was initially purchased…
A: (a) Determining the economic life of the challenger Challenger Year MV OM Cost PW EUAC 0…
Q: Green County is planning to construct a bridge across the south branch of Carey Creek to facilitate…
A: EUAC: It is a measure of equivalent annual cost in which total upfront cost is converted into the…
Q: The council members of a small town have decided that the earth levee that protects the town from…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: what is the B/C ratio for the project?
A: Benefit-cost ratio (B/C ratio) analysis is a financial approach that helps in estimating the…
Q: The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: A plasma arc furnace has an internal combustion temperature of 7,000◦C andis being considered for…
A: The Payback period and IRR can be computed as follows:
Q: During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased…
A: The question is based on the concept of Depreciation Accounting.
Q: A city government adds street lights within its boundaries at a total cost of $300,000. The lights…
A: Hey, since there are multiple questions posted, we will answer first question.
Q: . At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving…
A: Original Cost of Asset=$40,000Salvage value=$20,000Life of Asset=4 yearsTotal Production=100,000…
Q: The state is considering three proposals for increasing the capacity of the main drainage canal in…
A: Computation:
Q: Pollution control equipment must be purchased to remove the suspended organic material from liquid…
A: The future value is the future worth of the amount that has to be paid or received at future.
Q: The city of Zamboanga contemplates to increase the capacity of their existing water transmission…
A: PW or NPV is the method to find the net benefit which can be generated from the future cashflows. It…
Q: Metropolitan Water Utility is planning to upgrade its SCADA system for controlling well pumps,…
A: Present worth is the present value of cash flows that are expected to occur in the future.
Q: The landfill for a particular city in Laguna has an area of 30 acres available for receiving waste…
A: Break even point is the point in which the entity (landfill) will make no profit no loss. Hence at…
Q: The county engineer is considering the purchase of a concrete transit mix truck, and asks you to…
A: The equivalent annual cost (EUAC) is explained as the annual cost of buying, operating and…
Q: Set up the NPV equation for the CBA.
A: Net present value is the present value of all future cash flows and initial cost of the project…
Q: A new highway is to be constructed. Design A calls for a concrete pavement costing 3600 per foot…
A:
Q: n 2016, the city of Abu Dhabi collected $24 million in fines from motorists because of traffic…
A: The rate of return is a ratio between net operating income and the initial cost of any project. It…
Q: Every 10 years, the dome of the state capitol building has to be cleaned, sandblasted, and…
A: Capital cost is the the amount which is needed to make a project operational. In order to find this…
Q: The city council wants the municipal engineer to evaluate three alternatives for supplementing the…
A: Present worth analysis is an analysis in which we convert all the cash flows to present worth using…
Q: A city is trying to decide whether to build a parking garage. An engineeringplan calculates that the…
A: The Benefit-Cost (B/C) ratio represents the relationship between the costs and benefits of a…
Q: BW Company has determined that it requires a new treatment facility that would clean polluted water…
A: The decision regarding the acquiring the asset or the construct the asset depends upon the various…
Q: An area on the Colorado River is subject to periodic flood damage that occurs, on the average, every…
A: PV is the current worth of cash flows that are expected to occur in the future.
Q: A city needs a new pedestrian bridge over a local stream. The city uses an interest rate of 5%, and…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Step by step
Solved in 2 steps
- The Department of Public Works is trying to decide between "patching" a road or repaving it completely. If the "patching" system is used, approximately 300 cubic meters of material will be required, at $25 per cubic meter (on site). Additionally, the berms will need to be re-constructed, which will cost $3000. The annual cost of routine maintenance of the "patched" road would be $4000. Repairs would only last 2 years, after which they would have to be re-made. The other alternative is for the department to repave the entire road, which would cost $65,000. This area would last 10 years if the road were maintained at a cost of $15000 per year, starting in 4 years. Regardless of which alternative is chosen, the road will be rebuilt within 10 years. If the interest rate is 13% per year, which alternative should the department select, based on present value?An environmental consultant is considering the installation of a water storage tank for a client. The tank is estimated to have an initial cost of $426,000, and annual maintenance costs are estimated to be $6,400 per year. As an alternative, a holding pond can be provided a short distance away at an initial cost of $180,000 for the pond plus $90,000 for pumps and piping. Annual operating and maintenance costs for the pumps and holding pond are estimated to be $17,000. The planning horizon is 20 years, and at that time, neither alternative has any salvage value. Determine the preferred alternative based on a present worth analysis with a MARR of 20%/year.A city is evaluating the installation of a garbage incinerator on the outskirts of town. The cost of the unit is $2 million. Environmental impact studies cost $25,000 to be paid prior to construction begins. Annual costs are estimated to include: Plant operating expenses: $30,000. Environmental remediation expenses: $32,000. As a benefit of the incinerator, a cost reduction of $12 per year is estimated to be on the bill of the company's 35,000 customers. The equipment is estimated to have a lifespan of 10 years, after which the incinerator will be dismantled at a cost of $45,000. Assuming the money is raised at 4% interest, how much is the profit ratio at cost of this project? a. 1.625 b. 1.597 c. 1.634 d. 1.651 e. None of the above
- A bulk-water supplier has been awarded by a city to supply their potable water for the next 10 years. The city will pay the supplier $150,000 per year during the 10-year contract. The supplier needs to set-up an additional water purification facilities that will have a first cost of $250,000 with an estimated salvage value of 10% of its first cost after 10 years. The operating cost is difficult to estimate, but company engineers have made optimistie, most likely, and pessimistic estimates. The optimistic estimate is that the operating cost will just be constant at $75,000 per year. The most likely estimate is that it will be $75,000 initially and will increase by $5,000 per year. The pessimistic estimate is that it will be $75,000 initially increasing at a rate of 10% per year. Determine if at which operating scenario the supplier will be able to make the most profit. The before tax MARR is 18% per year.Metropolitan Water Utility is planning to upgrade its SCADA system for controlling well pumps, booster pumps, and disinfection equipment so that everything can be controlled from one site. The first phase will reduce labor and travel costs by an estimated $31,000 per year. The second phase will reduce costs by an estimated $20,000 per year. If phase I will occur in years 1 through 3 and phase II in years 4 through 8, what is (a) the present worth of the savings, and (b) the equivalent annual worth for years 1 through 8 of the savings? Use an interest rate of 8% per year. Solve using tabulated factors and a spreadsheet.A new recycling sorting and processing line is proposed to serve a medium size city. The installed cost of the new line is $2,400,000. The residual value after ten years is estimated at $480,000. The unit would produce recycled material ready for resale at a rate of $0.15/pound, and would run for ten years. How much recyclable material must be generated every year to justify the project (i.e., for the present value of the project to be positive). Use an interest rate of 9%.
- A new highway is to be constructed. Design A calls for a concrete pavement costing 3600 per foot with a 20-year life, two paved ditches costing 120 per foot each and three box culverts every mile, each costing 360,000 and having a 20-year life. Annual maintenance will cost 72,000 per mile, the culverts must be cleaned every five years at a cost of 18,000 each per mile. Design B calls for a bituminous pavement costing 1800 per foot with a 10-year life, two sodded ditches costing 60 per foot each, and three pipe culverts every mile, each costing 90,000 and having a 10-year life. The replacement culverts will cost 96,000 each. Annual maintenance will cost 108,000 per mile, the culverts must be cleaned yearly at a cost of 9000 each per mile, and the annual ditch maintenance will cost 60 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 20-year period. Find the most economical design on the basis of Annual Worth and Present Worth if the Minimum…The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 50,000 m2 and the installed liner cost was $8 per m2. In order to recover the investment, the owner charges to unload at the rates of $10 per pick-up, $25 per dumptruck, and $70 per compactor-truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pick-up loads, 650 dumptruck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment?Jones Excavation Company is planning an investment of $233,500 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for eight years. Customers will be charged $120 per hour for bulldozer work. The bulldozer operator costs $37 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $20,000. The bulldozer uses fuel that is expected to cost $48 per hour of bulldozer operation. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192
- A southwestern city that has 170,000 households is required to install treatment systems for the removal of arsenic from drinking water. The annual cost is projected to be $50 per household per year. Assume that one life will be saved every three years as a result of the arsenic removal system andthat the EPA values a human life at $4.8 million. Use a discount rate of 8% per year and assume the life is saved at the end of each three-year period.Utilize a conventional B/C ratio to determine if the project is economically justified.Jones Excavation Company is planning an investment of $125,000 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for five years. Customers will be charged $90 per hour for bulldozer work. The bulldozer operator costs $30 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $7,500. The bulldozer uses fuel that is expected to cost $15 per hour of bulldozer operation. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine the equal annual net cash flows from operating the bulldozer. Jones Excavation Company Equal Annual Net…Briggs Excavation Company is planning an investment of $132,000 for a bulldozer. The bulldozer is expected to operate for 1,500 hours per year for five years. Customers will be charged $110 per hour for bulldozer work. The bulldozer operator costs $28 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $8,000. The bulldozer uses fuel that is expected to cost $46 per hour of bulldozer operation. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 6 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine the equal annual net cash flows from operating the bulldozer. Briggs Excavation Company Equal Annual Net…