Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. q1: determine the present worth of option a and b.

Q1: Determine the present worth of option a and b. Q2: Which option should...

60.1K

Verified Solution

Question

Finance

imageQ1: Determine the present worth of option a and b.

Q2: Which option should be selected?

Delcon Properties is a commercial developer of shopping centers and malls in various places around the country. The company needs to analyze the economic feasibility of rainwater drains in an area that it plans to develop. Since the development won't be started for 12 years, this large open space will be subject to damage from heavy thunderstorms that cause soil erosion and heavy rutting. Delcon has two options (A and B). Assume an interest rate of 4% per year. Option A: If no drains are installed, the cost of refilling the washed out area is expected to be $1,500 per year. Option B: A temporary corrugated steel drainage pipe could be installed that will prevent the soil erosion. The cost of the pipe will be $3 per foot for the total length of 7,000 feet required. The pipe will have a salvage value of $4,000 at the end of the 12-year period

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

For many, the idea of 'accounting regulation' is a fairly boring, mundane topic. It is something...

Accounting
Q

4. Are biomedical engineering salaries in Miami less than those in Minnesota? Salary data show that...

Basic Math
Q

What is the basis for “pin” and “thrum” flowers in SI plants?  You may use a carefully...

Biology
Q

Biology is important in ___understanding the environmentcommercial productsmedicineall of the above

Biology
Q

Which type of nonfiction writing is described below Point of View 3rd Subject Water Conservation...

Biology
Q

48 The equivalent resistance of series combination of four equal resistors is S If they...

Physics
Q

Based on their previous record, a football club has a 65% chance of winning each...

Basic Math
Q

Determine if the following functi f x x2 3 2 2x 6

Algebra
Q

Job 137 was started and completed during the year. What price would have been charged...

Accounting
Q

On March 1, 2011, Catherine purchased $60,000 of Tyson Co.'s 4%, 17-year bonds at face...

Accounting
Q

2. (a) What is a call option? (b) what is the maximum loss that could...

Finance
Q

8. Problem 15.08 (Alternative Dividend Policies) ELE eBook Rubenstein Bros. Clothing is expecting to pay...

Finance