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Under pressure to "complete" a road project, the bike path that goes with it is being postponed. What is the implied interest rate for postponing the bike path?
How many users per year are needed to justify the road if each trip is valued at $2? Assume re-striping cost not included in repaving cost.
These will also last forever, with a major repaving every 20 years at a cost of $4 million. What annual benefit is required for B/C = 1?
The renovation is expected to handle traffic for the next 8 years. Using an interest rate of 5%, calculate the project's benefit/cost ratio.
Why will it obtain the desired 6% after-tax rate of return? Assume that the equipment can be sold for its $12,000 salvage value at the end of the 8 years.
If he buys and holds the property for 20 years, what after-tax rate of return can he expect to receive on his investment, using the following assumptions?
What would be Steve's after-tax rate of return if he purchased the bonds for $75,000 cash and did not borrow the $50,000?
To increase its market share, Sole Brother Inc. decided to borrow $50,000 from its banker for the purchase. What is the after-tax interest rate on this loan?
What is the total state and federal income tax it must pay? Also, compute its combined incremental state and federal income tax rate.
Sole Brother Inc. is a shoe outlet to a major shoe manufacturing industry located in Chicago. What would have been the effective annual after-tax interest rate?
What is taxable income for the first year, and how much should the company expect to pay in taxes?
Using the answer from Problem 12-9, set up the equation to compute the after-tax rate of return for each scenario.
Given the following data, compute your combined income tax rate (CTR) assuming you deduct allowable expenses on yourincometax forms: a before-tax MARR of 5%.
Find the annual after-tax rate of return of this investment. Assume a 35% tax rate applies. Contributed by D. P. Loucks, Cornell University.
An unmarried individual in California with taxable income of about $80,000 has a federal incremental tax rate of 28%. What is his combined incremental tax rate?
Bill Alexander and his wife, Valerie, are both employed. Bill will have an adjusted gross income this year of $70,000. On what date should Valerie quit her job?
Jane is single and has $3500 of itemized personal deductions. Which alternative will result in a smaller total payment of taxes to the government?
A married couple filing jointly have a combined total adjusted gross income of $75,000. Compute their federal income tax.
If an additional month's work would increase Bill's taxable income by $1600, how much more money would he have after paying the income tax?
Compute the total tax they would pay as unmarried individuals. Then compute their tax as a married couple filing a joint return.
If this increase should be $16,000 and there should be no change in nonbusiness deductions or exemptions, what will be the increase in his federal income tax?
Report on a list of projects from a public agency, such as a state highway or municipal street department, the EPA, or the Bureau of Reclamation (dams).
Prepare a short report on a public project that summarizes costs, benefits and disband fits. What assumption seems most critical to the validity of the results?
Using an interest rate of 12% and the NHTSA standard, how much should DOT be willing to pay for the improvement?
How many statistical lives per year must be saved to justify a new bypass around a large city that will cost $12.5M to construct and $135K per year to maintain?