Use the Following Information to Answer Questions
the City

question 23

Multiple Choice

Use the following information to answer Questions
The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. $$\begin{array}{l}\begin{array} {lll } \text {Cost of tractor and equipment useful life 10 years }&\$220,000\\\text {Salvage value of tractor in 10 years }&20,000\\\text {Yearly cost of operator }&6,000\\\text {Yearly maintenance and upkeep, supplies, etc. }&3,000\\\text {Option \#2 }&\\\text {Yearly fees }&\$36,000\\\text {Option \#3 }&\\\text {Yearly cost of part-time labor }&\$32,000\\\text {Yearly cost of supplies, equipment repair, etc. }&1,000\\\text {Present value factors \( @ 6 \% \) }&\\\text {\( \$ 1 \) due in ten years }&.55839\\\text {Annuity of \( \$ 1 \) for 10 years }&7.36009\\\end{array}\end{array}$$
-Which option should the City select based solely on cost?

• A)Option #1
• B)Option #2
• C)Option #3
• D)Unable to determine.

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Definitions:

Perception

How people systematically process and analyze their sensory data to interpret and give value to their immediate environment.

Color

The characteristic of visual perception described through color categories, with names such as red, blue, yellow, etc., based on the wavelength of light.

Size

A dimension that represents the magnitude or extent of an object or entity, often quantified in units such as meters, liters, or kilograms.

Brightness

The perception of the intensity of light emitted or reflected by an object.