Chapter 1, Problem 10DQ

The Dudumwezi city Council is a considering the introduction of speed trains in order to deal with the problem of traffic congestion in the city. The project will be implemented through the PPP model. Councilors are skeptical about the financial viability of the project and have asked for a financial viability assessment of the project. To this end the council management has engaged a consultant to carry out this assessment. Required:To aid the Councilor’s, explain why it is important to carry out a cash flow analysis in project finance and the five factors that need to be considered when calculating cash flows.

Which one of the following costs is most likely to be deductible? Group of answer choices Fines paid for dumping toxic waste into a City of Denver park. Bribes to a city health inspector to ensure an “A” rating to a restaurant. The telephone bill for the headquarters of an illegal stolen car parts organization. Advertising costs for a Colorado marijuana dispensary.

Use the following information to answer Problems 45-47 (Algo) [The following information applies to the questions displayed below.] Washington County's Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below. Cost of acquiring additional land for runway Cost of runway construction Cost of extending perimeter fence Cost of runway lights Annual cost of maintaining new runway Annual incremental revenue from landing fees $78,500 236,770 32,475 43,850 31,400 44,760 In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $117,000. The old snowplow could be sold now for $10,850. The new, larger plow will cost $13,700 more in…

The county of Edgerton is facing a General Fund deficit in 2018 because actual tax collections are lagging behind estimates. At a staff meeting, the village manager tells the chief of public works that the chief will need to terminate one employee in April to help keep the budget in balance. The chief of public works says: “I have a better idea. You know that state grant the finance commissioner put into a Special Revenue Fund because it could be used only for planting trees along the highways? Why don’t I just tell one of my boys to fill out his timesheets so that the time he spends changing street light bulbs is charged against the Special Revenue Fund? Neither our finance commissioner nor the state will ever know the difference.” How should the village manager respond?

Identify the type of government policies promoting innovation and social benefit represented by the following scenarios: A. Subsidies B. Taxation C. Neither D. Research and Development 1. ABC Research obtains a federal grant to research new energy sources ? ✓ 2. The city of Houston partially funds its community college to lower the cost of tuition 3. ExpertResearchInc receives a tax credit because of its research in critical technologies ? ✓ 4. The government regulates the emission of harmful chemicals no n. ?

Use the following information to answer questions 45-47 [The following information applies to the questions displayed below.] Washington County's Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below. Cost of acquiring additional land for runway Cost of runway construction Cost of extending perimeter fence Cost of runway lights Annual cost of maintaining new runway Annual incremental revenue from landing fees $ 60,000 305,000 53,937 30,000 15,000 20,000 In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $105,000. The old snowplow could be sold now for $10,500. The new, larger plow will cost $6,000 more in annual…

Officials for the City of Artichoke, West Virginia, have recently formed a transit authority to create a public transportation system for the community. These same Officials are now preparing the city's CAFR for the most recent year. The transit authority has already lost a considerable amount of money and the officials have become interested in its reporting and whether it qualifies as a component unit of the city. Following are several articles written about the reporting of component units by a state or local government: "Changes in Component Units," Government Finance Review, February 2011. "GASB Issues Guidance on Financial Reporting Entity, Component Units," Accounting Policy & Practice Report, January 7, 2011. "Financial Reporting for Affiliated Organizations," The Journal of Government Financial Management, Winter 2003. "How to Implement GASB Statement No. 34," The Journal of Accountancy, November 2001. "GASB Issues Guidance on Blending Certain Component Units into…

The board of education for the Central Catskill School District is considering the acquisition of several minibuses for use in transporting students to school. Five of the school district's bus routes are underpopulated, with the result that the full-size buses on those routes are not fully utilized. After a careful study, the board has decided that it is not feasible to consolidate these routes into fewer routes served by full-size buses. The area in which the students live is too large for that approach, since some students' bus ride to school would exceed the state maximum of 60 minutes. The plan under consideration by the board is to replace five full-size buses with eight minibuses, each of which would cover a much shorter route than a full-size bus. The bus drivers in this rural school district are part-time employees whose compensation costs the school district $21,000 per year for each driver. In addition to the drivers' compensation, the annual costs of operating and…

The board of education for the Central Catskill School District is considering the acquisition of several minibusses for use in transporting students to school.  Five of the school district’s bus routes are underpopulated, with the result that the full-size buses on those routes are not fully utilized.  After careful study, the board has decided that it is not feasible to consolidate these routes into fewer routes served by full-size buses.  They are in which the students live is too large for that approach, since the students’ bus ride to school would exceed the state maximum of 45 minutes. The plan under consideration by the board to replace the five full-size buses with eight minibusses, each of which would cover a much shorter route than a full-size bus.  The bus drivers in this rural school district are part-time employees whose compensation costs the school district $18,000 per year for each driver.  In addition to the drivers’ compensation, the annual costs of operating and…