Salem College Is Embarking on a Capital Expenditure Program Involving

question 16

Multiple Choice

Salem College is embarking on a capital expenditure program involving a new campus building that depends on projected enrollment. There is a 60 percent chance that enrollment will increase by 1,000 students and a 40 percent chance that enrollment will increase by 500 students. If the current enrollment is 7,000 students, what should the design capacity of the new campus building be?

• A) 800 students
• B) 6,200 students
• C) 7,800 students
• D) 8,500 students

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Definitions:

Social Interest

The collective well-being and interests of the community or society as a whole, often used as a consideration in economic and political policies.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Flood Control

Measures and strategies implemented to manage water levels and reduce the risk and impacts of flooding.

Tennessee Valley Authority

A federally owned corporation in the United States created in 1933 to provide navigation, flood control, electricity generation, and economic development to the Tennessee Valley, a region particularly affected by the Great Depression.