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:

Electroconvulsive Therapy

A medical treatment involving electrically induced seizures for therapeutic effect, primarily used in severe cases of depression.

Drug Therapy

The treatment of disease by administering pharmaceutical substances.

Behaviour Therapists

Specialists in psychology that apply principles of learning and conditioning to help change maladaptive behaviors in individuals.

Pathological Behaviours

Actions or patterns of behavior that are indicative of disease or disorder.