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katrin2010 [14]
3 years ago
11

city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market val

ue at the end of its life. Operating and maintenance expenses for the system are projected to average $0.6 million per year. If the city’s MARR is 8% per year, what is the capitalized worth of the system? The study period is 100 years. (5.3)
Business
1 answer:
ValentinkaMS [17]3 years ago
6 0

Answer:

capitalized worth = $13,475,000

Explanation:

Capitalized worth = annual worth / interest rate

  • annual worth = [initial outlay x discrete compounding factor (A/P, 8%, 40 periods)] - annual maintenance cost = ($20,000,000 x 0.0839) - $600,000 = $1,678,000 - $600,000 = $1,078,000
  • interest rate = 8%

capitalized worth = $1,078,000 / 8% = $13,475,000

Capitalized worth measures the present value of a project that should last a very long time.

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One way of representing attaining the positive externality by the government is through the promotion of education.

Option D is the correct answer.

<h3>What is an externality?</h3>

When the cost or advantage is received by a third party that is not related to the economic activity, then it is considered an externality.  

A positive externality is the arousal of a positive effect on either production or consumption. The act of penalizing a company for pollution, imposing taxes on citizens earning more than $250,000 and the reduction in rates of interest would all be classified as negative externalities.

Therefore, the encouragement of education by the government is regarded as a positive externality.

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4 0
2 years ago
True of false: the best measure to use when comparing alternative investments is the amount of the dollar gain or loss.
Evgesh-ka [11]
That statement is  True
In general, using only one measurement in comparing alternative investments is a mistake.
But, if you're only could choose one measurement, <span>the amount of the dollar gain or loss would be the best because it allows you to determine the time needed before you break your investment event and started obtaining profit.</span>
5 0
2 years ago
Dan, a computer programmer, holds a garage sale to sell a lawnmower, some clothes, some CDs and some old clothes. Will, a lawyer
Mama L [17]

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<em>C. Judy</em>

Explanation:

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An individual is a merchant whenever, working in a professional context, he or she possesses or utilizes skills related specifically to both the products and services being offered.

<em>Judy is an expert in horse training, therefore possess skills, that will offer her an advantage in selling horses.</em>

6 0
2 years ago
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Annette [7]

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an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

Explanation:

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

an increase in the real money

supply, a decline in interest rates,

an increase in investment

spending, and an increase in

aggregate output demanded.

5 0
2 years ago
____ are procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to
masya89 [10]
Background checks, I would assume.
6 0
3 years ago
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