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Triss [41]
3 years ago
10

The city of Angola, Indiana is considering building a snowmobile trail on the land owned by the city. The life of the project is

assumed to be 20 years. Building the trail would require an investment of $140,000 from the public funds. The annual maintenance would require an additional $25,000 per year. The annual benefits to the public of using the trail are estimated to be equivalent to $40,000 per year. After 20 years, the city will sell the right to operate the trail to the Angola Snowmobile Club, Inc. for $10,000. Compute a MODIFIED B-C ratio, using the present worth method, for the project, determine whether it should be accepted, and explain why. Make sure you use the formula appropriate for the modified B-C ratio. Assume 4% cost of capital.
Business
1 answer:
Nonamiya [84]3 years ago
4 0

Answer:

Answer for the question :

The city of Angola, Indiana is considering building a snowmobile trail on the land owned by the city. The life of the project is assumed to be 20 years. Building the trail would require an investment of $140,000 from the public funds. The annual maintenance would require an additional $25,000 per year. The annual benefits to the public of using the trail are estimated to be equivalent to $40,000 per year. After 20 years, the city will sell the right to operate the trail to the Angola Snowmobile Club, Inc. for $10,000. Compute a MODIFIED B-C ratio, using the present worth method, for the project, determine whether it should be accepted, and explain why. Make sure you use the formula appropriate for the modified B-C ratio. Assume 4% cost of capital."

is explained in attachment.

Explanation:

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Answer: interactional

Explanation:

Based on the information given, the trainer’s failure to discuss these aspects of Tony’s presentation performance demonstrated a lack of attention to the interactional justice.

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In this scenario, the trainer failed to interact with Tony as he didn't explain his flaws to him and didn't tell him the reason that he wasn't chosen. Thereby, the trainer didn't pay attention to interactional fairness.

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3 years ago
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MariettaO [177]

Answer:

Proposal A:  $185,714.29

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Explanation:

Giving the following information:

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Proposal B: (70,000 + 10,000)/[(20-10)/20]= $160,000

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