Question: solve the question If an alternative has a salvage value, how is it han- dled in the calculation of a B/C ratio relative to benefits,

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solve the question If an alternative has a salvage value, how isit han- dled in the calculation of a B/C ratio relative tobenefits, disbenefits, costs, or savings? The cost of grading and spreading gravelon a short rural road is expected to be $300,000. The roadwill have to be maintained at a cost of $25,000 per year.Even though the new road is not very smooth, it allows access

If an alternative has a salvage value, how is it han- dled in the calculation of a B/C ratio relative to benefits, disbenefits, costs, or savings? The cost of grading and spreading gravel on a short rural road is expected to be $300,000. The road will have to be maintained at a cost of $25,000 per year. Even though the new road is not very smooth, it allows access to an area that previously could only be reached with off-road vehicles. The improved accessibility has led to a 150% increase in the property values along the road. If the previ- ous market value of a property was $900,000, calculate the B/C ratio using an interest rate of 6% per year and a 20-year study period. Arsenic enters drinking water supplies from natu- ral deposits in the earth or from agricultural and industrial practices. Since it has been linked to cancer of the bladder, kidney, and other internal organs, the EPA has lowered the arsenic standard for drinking water from 0.050 parts per million to 0.010 parts per million (10 parts per billion). The annual cost to public water utilities to meet the new standard is estimated to be $200 per house- hold. If it is estimated that there are 90 million households in the United States and that the lower standard can save 50 lives per year valued at $4,000,000 per life, what is the benefit/cost ratio of the regulation?Over the last few years, Carol's Fashion Store, a statewide franchise, has experienced the D-E mixes and costs of debt and equity capital on sev- eral projects summarized below. (a) Plot debt, equity, and weighted average cost of capital. (b) Determine what mix of debt and equity capi- tal provided the lowest WACC. Debt capital Equity capital Project Percent Rate Percent Rate A 100% 14.5% B 70 13.0 30% 7.8% C 65 12.0 35 7.8 50 11.5 7.9 35 9.9 65 9.8 20 12.4 20 125 100 12 5 For Problem 10.19, use a spreadsheet to (a) deter- mine the best D-E mix and (b) determine the best D-E mix if the cost of debt capital increases by 10% per year, for example, 13.0% increases to 14.3%In 2010, Brazil began construction of the Belo Monte hydroelectric dam on the Xingu River (which feeds the Amazon River). The project is funded by a consortium of investors and is ex- pected to cost $11 billion. It will begin producing electricity in 2015. Even though the dam will pro- vide clean energy for millions of people, environ- mentalists are sharply opposed. They say it will devastate wildlife and the livelihoods of 40,000 people who live in the area to be flooded. Assume that the funding will occur evenly over the 5-year period from 2010 through 2014 at $2.2 billion per year. The disbenefits are estimated to be $100,000 for each displaced person and $1 billion for wildlife destruction. Assume that the disbenefits will occur evenly through the 5-year construction period and anticipated benefits will begin at the end of 2015 and continue indefinitely. Use an interest rate of 8% per year to determine what the equivalent annual benefits must be to en- sure a B/C ratio of at least 1.0. In the United States, the average number of air- planes in the sky on an average morning is 4000. There are another 16,000 planes on the ground. Acrospace company Rockwell Collins developed what it calls a digital parachute-a panic-button technology that will land any plane in a pinch at the closest airport, no matter what the weather or geography and without the help of a pilot. The technology can be applied if a pilot is no longer capable of flying the plane or is panicked and con- fused about what to do in an emergency. Assume that the cost of retrofitting 20,000 commercial air-Find the probability distribution for the number of jazz CDs when 4 CDs are selected at random from a collection consisting of 5 jazz CDs, 2 classical CDs, and 3 rock CDs. Express your results by means of a formula. A tire manufacturer wants to determine the inner diameter of a certain grade of tire. Ideally, the diameter would be 570 mm. The data are as follows: 572, 572, 573, 568, 569, 575, 565, 570. (a) Find the sample mean and median. (b) Find the sample variance, standard deviation, and range. (c) Using the calculated statistics in parts (a) and (b), can you comment on the quality of the tires?The probability distribution of X, the number of imperfections per 10 meters of a synthetic fabric in continuous rolls of uniform width, is given by 1 2 3 I(x) 0.41 0.37 0.16 0.05 0.01 Construct the cumulative distribution function of X. Let X denote the diameter of an armored electric cable and Y denote the diameter of the ceramic mold that makes the cable. Both X and Y are scaled so that they range between 0 and 1. Suppose that X and Y have the joint density f (z, y) = - 01/2).The total number of hours, measured in units of 100 hours, that a family runs a vacuum cleaner over a period of one year is a continuous random variable X that has the density function 0<: f o elsewhere. find the probability that over a period of one year family runs their vacuum cleaner less than hours between and>

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