A Local Government Awards a Landscaping Company a Contract Worth

question 30

Multiple Choice

A local government awards a landscaping company a contract worth $1.2 million per year for five years for maintaining public parks.The landscaping company will need to buy some new machinery before they can take on the contract.If the cost of capital is 7%,what is the most that this equipment could cost if the contract is to be worthwhile for the landscaping company?

• A)$4.55 million
• B)$4.61 million
• C)$4.92 million
• D)$5.26 million

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Definitions:

Productivity Measurement

The process of determining the efficiency of production of goods or services, typically by comparing input resources to output.

Evaluation System

A structured approach to assess the performance and effectiveness of employees, projects, or processes.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to be accomplished.

Job Characteristics Approach

A theory that suggests jobs can be designed with specific characteristics to increase employee motivation and satisfaction.