Use the Following Information to Answer Questions
the City

question 1

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 of the following best describes the role of benefit-cost analysis in the capital budgeting process by governmental and not-for-profit entities?

• A)It may be used to enhance the objectivity of decision-making.
• B)Because all costs and all benefits can be quantified, it removes subjectivity from the decision process.
• C)It eliminates the role of value judgments in the decision-making process.
• D)It ensures that decisions about capital asset acquisition will be consistent with organizational goals and objectives.

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Definitions:

Ratify

The act of officially approving a treaty, agreement, or legislation, making it formally valid.

Three-Fifths Compromise

An agreement reached during the 1787 United States Constitutional Convention that counted three out of every five slaves as a person for purposes of representation and taxation.

Extra Representation

Additional or surplus representation, often in the context of legislative bodies where certain regions or groups receive more representatives than others based on various factors.

Slaves

Individuals forced into labor without pay and denied freedom, a practice seen in many societies historically and, in some forms, continuing today.