1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
egoroff_w [7]
3 years ago
5

Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.7 million to bui

ld and $175,000 per year to maintain. Design 1B will cost $3.6 million to build and $40,000 per year to maintain. Both designs are assumed to be permanent. Use an AW-based rate of return equation to determine (a) the breakeven ROR and (b) which design is preferred at an MARR of 25% per year.
Business
1 answer:
Vladimir79 [104]3 years ago
5 0

Answer and Explanation:

A. Given that Design 1A will cost $1.7 million to build and $175,000 per year to maintain

Given that Design 1B will cost $3.6 million to build and $40,000 per year to maintain

Both designs are assumed to be permanent

To find ROR using AW based rate of return equation, we find present value of each design and equate them:

Each design is permanent so

Present value of perpetuity:

Design 1A= 1700000+175000/r

Design 1B = 3600000+40000/r

=1700000+175000/r=3600000+40000/r

135000/r=1900000

Cross multiply

r=135000/1900000

r= 0.0710

r=7.10%

B Given that ROR=7.10% and MARR is 25%

MARR>ROR

Hence we reject both designs

You might be interested in
Which best describes what happens to the amount of a good or service that is supplied to consumers? The amount of a good or serv
Debora [2.8K]

The amount of a service cannot change. But the quality of a service can change positively or negatively

3 0
3 years ago
Read 2 more answers
By the second decade of the 21st century, most organizations were devoting less and less time and attention to corporate ethics.
yKpoI14uk [10]

It is true that by the second decade of the 21st century, most organizations were devoting less and less time and attention to corporate ethics.

<h3> Corporate Ethics</h3>

Business ethics (also known as Corporate Ethics) is a state of applied ethics or experienced ethics, that explores ethical principles and moral or ethical concerns that can arise in a enterprise environment. It spreads to all aspects of business conduct and is applicable to the conduct of individuals and entire associations.

<h3>What are the type business ethics?</h3>

(i) Politics without Principles

(ii) Wealth without Work

(iii) Commerce without Morality

(iv) Knowledge without Character

(v) Pleasure without Conscience

(vi) Science without Humanity

(vii) Worship without Sacrifice.

To learn more about business ethics visit the link

brainly.com/question/27824491

#SPJ4

7 0
1 year ago
Low budget sports and entertainment marketers who want to use 21st century advertising wisely can benefit from ?
kodGreya [7K]

Answer:

the answer is your 2nd choice.

Explanation:

getting the "word" out there about your business or product is reaching more consumers rather than just newspapers. local advertising does benefit, but your biggest customer base is thru a media strategy..

7 0
4 years ago
Read 2 more answers
During the Christmas season, stores sell trees and wreaths are applying the ___ utility
Aleks [24]

PLACE.........................................................................

                     

4 0
4 years ago
Marlon wants to save money over a long period of time. He does not need to have easy access to the money, and he is worried abou
Ne4ueva [31]

Answer:

Bonds

Explanation:

Bonds fit all of Marlon's needs since:

  1. He can know the interest rate up front, e.g. the coupon rate of the bond, or  the market rate if the bond is purchased at a premium or discount.
  2. Some bonds have a very remote maturity date, up to 30 years (e.g. US securities) and that is a long period of time.
  3. Even though Marlon can cash his money before the bond matures (he can sell them), it is something that takes a few days and must be done by a broker.
  4. Bonds are very secure investments, specially US securities which are considered the most secure investment in the world, but even corporate bonds are considered secure. In case the firm goes is liquidated, bondholders receive their money before preferred stockholders and common stockholders.

8 0
3 years ago
Other questions:
  • _____ leaders are agents of change because they develop an appealing vision of the desired future state, communicate that vision
    12·1 answer
  • Shankar Company uses a perpetual system to record inventory transactions. The company purchases 1,500 units of inventory on acco
    15·1 answer
  • According to the aggregate demand curve, when the aggregate price level _____, the quantity of aggregate output _____. rises; de
    11·1 answer
  • Checkable deposits are classified as money because:
    14·1 answer
  • On November 1, Bahama National Bank lends $3.8 million and accepts a six-month, 6% note receivable. Interest is due at maturity.
    14·1 answer
  • In a market analysis, the _____ is considered a good indicator of the potential of the market. It is derived by dividing the per
    11·1 answer
  • The _____ is an agency of the federal government that offers both managerial and financial assistance to small businesses.
    10·1 answer
  • What is the most important responsibility of project manager
    9·1 answer
  • Jim had a car accident in 2019 in which his car was completely destroyed. At the time of the accident, the car had an adjusted b
    13·1 answer
  • Please answer the following questions:
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!