Answer:
before tax corportate bond equivalent: 11.15%
Explanation:
The municipal bond are tax-free making them more attractive than normal corporate bonds.
thus, the municipal bond rate should be compare with the after tax rate of a corporate bond:
before tax rate ( 1 - tax rate) = after tax rate
<u>For this case:</u>
the after tax rate is 7.25%
and the tax bracket is 35%
before taxes ( 1 - 0.35) = 0.0725
0.0725/.65 = 0,1115384 = <em>11.15%</em>
<u>Solution and Explanation:</u>
(a)-<u>NPV if the Discount Rate is Zero
</u>
If the Discount Rate is Zero, the NPV of the Project is the sum of the Future cash flows deducted by Initial Investment
Net Present Value (NPV) 
= $256,430
If the Discount Rate is Zero, The NPV will be $256,430”
(b)-<u> NPV If the discount rate is infinite
</u>
If the Discount Rate is Infinite, the NPV of the Project is the Initial Investment
NPV = -$534,800 (Negative)
Calculate the sample proportion (198 yes responses out of 316).

We want to test against a sample size of n = 2200 daily passengers.
In order to use the normal distribution, we should satisfy

2200*0.6266 = 1378.5
2200*(1-0.6266) = 821.5
We may use the normal distribution.
Let us use a 95% confidence interval.
The estimate for the population proportion is

where z* = 1.96 at the 95% confidence level.

Therefore
p = 0.6266 +/-0.0202 = (0.6064, 0.6468)
Answer:
At the 95% confidence level, about 60% to 64% of regular passengers will buy snacks on the train.
I do believe that is the gross domestic product!