A city government is considering building a new system of lighted bike paths. A counselor supporting...

A city government is considering building a new system of lighted bike paths. A counselor supporting their construction lists the following as potential benefits of the paths: (1) more enjoyable bike rides for current and future bikers, (2) reduced rush-hour automobile traffic due to increases in bike commuting, and (3) the creation of 15 construction-related jobs. Can all of these be considered benefits? Explain.

Solutions

Expert Solution

Yes, the counsellor said is absolutely right and beneficial for the economy and environment as well. Nowadays the environment suffering from numerous environmental hazards due to air pollution and e-waste by increasing the number of the vehicle.

The vehicles exhaling the carbon dioxide and carbon monoxide and the other number of chemical cocktails. rise the amount of carbon in the atmosphere. This pollution causes global warming, climate change and ozone depletion. These make a detrimental consequence on human existence on earth. So that the new light bike path is a good initiative from the government. Which can avoid pollution and which help to generate employment and reduce the traffic conjunction and reduce the number of accidents

According to the counsellor through the building of the new bike path more people can enjoy the bike riding now and future. And reduced the automobile traffic and employment generation everything will be possible. Because people more prefer the bike commuting and path building create a job for the unskilled workers. More, over bike commuting is less expensive than automobile commuting this will also useful for people and people to spend to another area. which leads to more spending and create more worth to the economy.

To recapitulates, the new bike path is to create more advantages to the economy and environment. So the counsellor proposal is really beneficial.

Rahul Sunny answered 2 months ago

Next > < Previous

Related Solutions

A city with 4% unemployment and no inflation is considering building a new stadium for its...

A city with 4% unemployment and no inflation is considering building a new stadium for its professional football team. The team currently plays in an old stadium owned by the city. It would cost city $500M (M for million) to demolish the old stadium and build a new one at the same location, which the city owns. The new stadium would be expected to last for 40 years and the city would finance the costs of the project by borrowing...

1. Company Amliba.Inc is considering building a second headquarter in a new city. The new office...

1. Company Amliba.Inc is considering building a second headquarter in a new city. The new office will create 5000 new jobs for the city. So the government is incentivized to support the project. The company plans to issue $100 million bond with coupon rate of 8%. Coupon will be paid annually and the bond matures in 5 year. As a form of support, local government guarantee the bond, so the YTM of the bond at issuance is 5%. Another bond...

The City of G is considering building a light rail transit (LRT) system similar to the...

The City of G is considering building a light rail transit (LRT) system similar to the one recently constructed in City KW. You have been asked to conduct a cost benefit analysis of the project. You have some data about the KW LRT project: Present value of annual net benefits (to KW residents) =$620 million Construction costs (paid by KW residents) (t=0) =$820 million Grant from the provincial government (t=0) =$300 million Grant from the federal government (t=0) =$250 million...

(a) A city is spending $10 million on building a new sewage system. Suppose the annual...

(a) A city is spending $10 million on building a new sewage system. Suppose the annual operating expenses for the system are projected to be $6,000 for each year, starting in year one and continuing forever. And maintenance expense of $20,000 starts in year five, repeating every five years thereafter and continuing forever. If the city’s MARR is 10% per year, what is the capitalized worth of the system? b. Alice deposits $2,000 in a savings account now which offers...

The city government is considering two tax proposals:

8. Problems and Applications Q8 The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Marginal cost will increase. Average variable cost will remain unchanged. Average fixed cost will increase. Average total cost will increase. Which of the following statements is true as a result of the per-burger tax? Check all that...

Government Accounting - Capital Project Funds The City of Norfolk, Nebraska authorized the building of a...

Government Accounting - Capital Project Funds The City of Norfolk, Nebraska authorized the building of a new airport wing for the year 2017. Bonds were issued to pay for the new wing. The face amount of the bonds was $10,000,000 and the bonds sold at 98. In addition, the federal government provided $2,000,000 and the City’s General Fund provided $1,000,000 toward the wing. One contract to begin construction on the airport wing was signed on January 2, 2017 for $8,000,000....

The City of Boston is considering adding new buses for its current mass-transit system that links...

The City of Boston is considering adding new buses for its current mass-transit system that links from the Hartsfield International Airport to major city destinations on a nonstop basis. The total investment package is worth $6 million and expected to last 9 years with a $840,000 salvage value. The annual operating and maintenance costs for buses would be $1 million during the first year, and will grow by 7% each year over the previous year thereafter. If the system is...

A new subdivision was recently built within the city limits of Hattenville, Mississippi. The City Government...

A new subdivision was recently built within the city limits of Hattenville, Mississippi. The City Government has taken on the project of building and installing streetlights and benches within the subdivision. The City Government will issue five-year bonds in order to finance the project. According to the city’s laws and homeowner’s agreement, the provision of lighting the sidewalks is the responsibility of the homeowners. An excerpt from the bond agreement is provided below: The aforementioned bonds are issued and held...

The CFO of Vandelay Industries is considering the launch of a new child's bike seat that...

The CFO of Vandelay Industries is considering the launch of a new child's bike seat that will revolutionize the industry. It has been estimated that the project will last 5 years. The machine that will manufacture the bike seat costs $2 million, and will be depreciated using the straight line method to zero book value over 10 years. Projected sales are $700,000 in each year. Annual costs are estimated to be $140,000. The CFO believes that the manufacturing machine can...

The government is considering building a major infrastructure project at a cost of €200m. The expected...

The government is considering building a major infrastructure project at a cost of €200m. The expected benefits of the project are €500m. (i) Based on the Kaldor-Hicks criteria should the government implement this project? Justify your answer. (ii) A project that satisfies the Kaldor-Hicks criteria is always guaranteed to increase aggregate welfare. True or false? Explain your answer using a numerical example. In your example use the cost and benefits of the project outlined above ( approx 160 words total)

Subjects