Political Science homework help
“Cost-Benefit Analysis” Please corcorrespond to the following:
In a heavily debated City Council discussion, undivided year gone, Cobb County skilled that by purchaseing larger offal trucks it could impoverish strive absorb ce offal dispersion. Note: All the dollar amounts beneath are in this year’s (present) dollars.
The absorb of the trucks today (undivided year posterior) is $400,000.
The annual savings in this year’s dollars is $90,000.
The trucks succeed terminal ce indecent years and then succeed be sold ce $100,000.
The city can hypothecate capital at a 7% remittance admonish to coercionfeiture the trucks.
Inflation ce the direct indecent years is expected to mediocre 3%.
Assuming the absorb and benefits are incurred at the object of the year, should the city purchase the trucks?