A Local Government Awards a Landscaping Company a Contract Worth

question 56

Multiple Choice

A local government awards a landscaping company a contract worth $1.5 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 6%, what is the most that this equipment could cost if the contract is to be worthwhile for the landscaping company?

• A) $5.69 million
• B) $6.00 million
• C) $6.32 million
• D) $6.63 million

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Definitions:

Alternative Outcomes

Different possible results or endings that can occur from a set of circumstances or decision-making processes.

Egg Market

The commercial market involved in the production, distribution, and sale of eggs.

Egg Demand

The desire or market requirement for eggs, influenced by factors such as price, income, and preferences.

Egg Supply

The total quantity of eggs available in the market for consumption, affected by factors like production, import, and existing stock.