In 1949,Sycamore,Illinois Built a Hospital for About $500,000

question 26

Multiple Choice

In 1949,Sycamore,Illinois built a hospital for about $500,000.In 1987,the county restored the courthouse for about $2.4 million.A price index for nonresidential construction was 14 in 1949,92 in 1987,and 114.5 in 2000.According to these numbers,the hospital cost about

• A)$3.6 million in 2000 dollars,which is less than the cost of the courthouse restoration in 2000 dollars.
• B)$3.6 million in 2000 dollars,which is more than the cost of the courthouse restoration in 2000 dollars.
• C)$4.1 million in 2000 dollars,which is less than the cost of the courthouse restoration in 2000 dollars.
• D)$4.1 million in 2000 dollars,which is more than the cost of the courthouse restoration in 2000 dollars.

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Definitions:

Days' Sales in Inventory

A financial metric that calculates the average number of days a company takes to sell its inventory, indicating the efficiency of inventory management.

Dividend Yield

A fiscal metric indicating the annual dividend payment of a company as a proportion of its stock price.

Total Asset Turnover

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Inventory Turnover

An index that measures how often a firm's inventory is sold out and resupplied over a set period.