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Evgesh-ka [11]
3 years ago
14

The city of Animaltown plans to build a new bridge across the river separating the two halves of the city for use by its residen

ts. It is considering two plans for financing this bridge. Plan A calls for the bridge to be paid for out of tax revenues, allowing anyone to use the bridge freely. Plan B calls for imposing a toll of $6 for crossing the bridge, with the remainder of the cost to be paid out of tax revenues. City planners estimate a local demand curve for hourly use of the bridge to be Q = 1,800 – 100P. The bridge will be able to accommodate 2000 cars per hour without congestion. Which of the plans is more efficient, and why? How would your answer change if congestion was predicted on the bridge?

Business
1 answer:
goldenfox [79]3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Vulcan, Inc., has 8.7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments and
Lana71 [14]

Answer:

$880.72

Explanation:

Bond price will be calculated by following formula

Bond Price = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F x ( 1 + r )^-n ]

Bond Price = $87 x [ ( 1 - ( 1 + 0.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1 + 0.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $518.87 + $361.85

Bond Price = $880.72

6 0
3 years ago
A company borrows $25 000 to buy new equipment. The loan is to be repaid in five equal annual payments. If the interest rate is1
REY [17]

Answer:

Each payment is of $6595

Explanation:

Amount borrowed by company= $25000

No. of installments = 5

Interest rate = 10%

We are supposed to find how much are each of the payments

Formula : Amount =I (\frac{1-\frac{1}{(1+r)^n}}{r})

I = installment

r = rate of interest

n = No. of installments

So, 25000 =I (\frac{1-\frac{1}{(1+0.1)^5}}{0.1})\\\frac{25000}{(\frac{1-\frac{1}{(1+0.1)^5}}{0.1})}=I\\6594.93=I

So, Each payment is of $6595

7 0
3 years ago
During June, Buttrey Corporation incurred $73,000 of direct labor costs and $13,000 of indirect labor costs. The journal entry t
QveST [7]

Answer:

                                                            Dr.             Cr.

Work in process                             $73,000

Manufacturing overhead                $13,000

Account Payable                                              $86,000

Explanation:

The Direct cost are those which are directly attributable to the product or service under consideration. Indirect cost are those which cannot be directly assigned to product or service cost. All the direct cost is added to the work in process account and indirect cost are included in the manufacturing overhead account.

4 0
3 years ago
If there are 10,000 people in your age bracket, and 10 of them died last year, an insurance
vaieri [72.5K]

Probability of someone in that age bracket dying this year would be .001

Explanation:

A degree in Risk Management is a form of academic degree granted to students in a post-secondary program focused on Risk Management. A student, university and business school may earn risk management degrees.

The sum of confusion that occurs in a given situation.

For example, if the heads are selected in a coin toss, the amount of risk involved is 50 per cent, as there is a 50 per cent probability that every coin toss will end up with tails. See also the Theory of Large Number, Odds and Probability.

5 0
3 years ago
At Sunland Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciat
e-lub [12.9K]

Answer:

B. $1673920

Explanation:

First calculate Total loss

$2000000 loss from disposal of a component of the business and loss of $92400 from strike by the employees of a supplier

$2000000 + $92400 = $2,092,400

20% of the loss =

20% × $2,092,400

= $418,480

Therefore the effect of these events and transactions on 2020 net income net of tax would = Total loss - 20% of total loss

$2,092,400 - $418,480

= $1,673,920

4 0
3 years ago
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