The environmental protection agency of a county would like, Ask an Expert

Management Studies

The environmental protection agency of a county would like to preserve a piece of land as a wilderness area. The owner of the land will lease the land to the county for a 20-year period for the sum of SI 750 000, payable immediately. The protection agency\ estimates that the land will generate benefits of $150 000 per year, but they will forgo S20 000 per year in taxes. Assume that the ALARR for the county is 5%.

(a) Calculate a BCR using annual worth and classify the forgone taxes as a cost to the government.

(b) Repeat part (a), but consider the forgone taxes a reduction in benefits.

(c) Using your results from part (b), determine the most the county would be willing to pay for the land (within $10 000) if they accept projects with a BCAI of one or more.

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M92184411

Have any Question?Write your Review or question?

Related Questions in Business Management

Please help with the potential barriers to effective

Please help with the potential barriers to effective strategic planning in the health care environment How does this differ from the general business world?

An investor decides to purchase a business he hires a

An investor decides to purchase a business. He hires a consultant to help him find a good one. The consultant advises to find a business that faces no competition because such a business can earn rates of return in exces ...

Blurred boundaries -- as organizations become more

Blurred boundaries -- As organizations become more laterally structured, boundaries begin to breakdown as different parts of the organization need to work more effectively together. Boundaries between departments as well ...

Listed below is a total cost for a sample of eight

Listed below is a total cost for a sample of eight Caribbean weddings. $9,700 $9,400 $11,700 $9,000 $9,100 $10,500 $ 9,100 $9,800 At the 0.05 significance level, is it reasonable to conclude the mean wedding cost is less ...

I am taking a business management class we are currently on

I am taking a business management class we are currently on CH.6 Building Communications skills, book Office Procedures for the 21st century. 8th edition. 1. Discuss the importance of communications in the office. 2. Ide ...

Describe the followers qualities and behaviors that

Describe the follower's qualities and behaviors that contribute to productive and rewarding leader-follower relationships.

What types of challenges do human resources managers face

What types of challenges do human resources managers face in a modern business environment?

Examine service categories commonly provided by nursing

Examine service categories commonly provided by nursing homes. Determine two specific service categories that you believe are common factors of competition among nursing homes. Justify your response. Analyze the main ser ...

Distinguish between secondary and primary methods of data

Distinguish between secondary and primary methods of data collection. Is it possible to use secondary data methods as substitutes of primary methods? Justify the answer with suitable illustrations and using data from dif ...

A new machine averages 4 clock cycles per instruction and

A new machine averages 4 clock cycles per instruction, and runs at a system clock of 20 MHz. The Axiom-Verge algorithm set to benchmark the system will take an even 3000 instructions to complete. a) Knowing how many cloc ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Management Expert