• 29 APR 19
    • 0

    Cost-Benefit Analysis

    • In a heavily debated City Council meeting, one year ago, Cobb County learned that by buying larger garbage trucks it could reduce labor cost for garbage removal. Note: All the dollar amounts below are in this year’s (present) dollars.
    • The cost of the trucks today (one year later) is $400,000.
    • The annual savings in this year’s dollars is $90,000.
    • The trucks will last for four years and then will be sold for $100,000.
    • The city can borrow money at a 7% discount rate to purchase the trucks.
    • Inflation for the next four years is expected to average 3%.
    • Assuming the cost and benefits are incurred at the end of the year, should the city buy the trucks?
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      Week5EActivity.doc
     

    "PLACE THIS ORDER OR A SIMILAR ORDER WITH NURSING PAPER SERVICE AND GET AN AMAZING DISCOUNT"

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"PLACE THIS ORDER OR A SIMILAR ORDER WITH NURSING PAPER SERVICE AND GET AN AMAZING DISCOUNT"