Highways-R-Us is going to build a toll road in Texas. The initial investment in paving equipment is $20 million. Straight-line depreciation will be used, and the construction equipment has an economic life of two years with no salvage value. Other construction costs are estimated to be $10.5 million per year. The project will be finished in two years. Net annual toll revenue collected from the usage of the road is projected to be $6 million for 20 years starting from the end of the first year of usage. Assume: a. The corporate tax rate is 35%.
b. The required rate of return for the project under all-equity financing is 12%.
c. The prevailing market interest rate is 9% a year.
d. The state government, eager to encourage the project, offers to help finance the project by lending $10 million at a subsidized rate of 5% per year.

Required:
Find the value of this project using the APV.

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Budget in this final week, you will develop a proposed budget of $150,000 for the first year of the program and complete the final concept paper for the proposed program due for senior management review. the budget should identify the program's anticipated expenses for the year ahead. budget line items should be consistent with the proposed program and staffing plan. using the readings for the week, the south university online library, and the internet, complete the following tasks: create a proposed budget of $150,000 for the first year of the proposed program including the cost for personnel, supplies, education materials, marketing costs, and so on in a microsoft excel spreadsheet. you may transfer your budget to your report. justify the cost for each item of the proposed budget in a budget narrative.

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?