Note to the Expert. Please do not worry about the basic words questions section in each module as assigned. I just need help with the rest of the calculations and so. I can use the textbook to answer those questions.
© Word| Xx | sw Grand( x | | Studen x | Sonin x | @ screen: x | @ Halo x | og Gand x | @ chenz x | @ ADME x @ Hao x Bhi) x | + vo o_o| x CG @& halo.geu.edu/resource/2e55626d-a43a-4b68-8832-09950da36{7e Q < %«="" »="" 0="" topic="" 7="" —="" cost="" benefit="" analysis="" worksheet="" directions:="" the="" questions="" below="" are="" the="" same="" question="" from="" your="" textbook.="" please="" use="" this="" document="" to="" record="" your="" answers.="" once="" you="" have="" answered="" all="" questions="" please="" upload="" the="" document="" to="" your="" instructor="" in="" the="" lms="" module="" 17:="" cost-benefit="" analysis="" 1.="" what="" is="" cost-benefit="" analysis?="" what="" are="" the="" main="" steps="" in="" conducting="" cost-benefit="" analysis?="" 2.="" a="" city="" has="" learned="" that="" by="" buying="" larger="" garbage="" trucks,="" it="" could="" reduce="" labor="" costs="" for="" garbage="" removal.="" note:="" all="" the="" dollar="" amounts="" below="" are="" in="" this="" year’s="" dollars="" (constant="" dollars),="" cost="" of="" the="" trucks="" today="" is="" $400,000.="" annual="" savings="" in="" this="" year’s="" constant="" dollars="" is="" $90,000.="" trucks="" will="" last="" for="" 4="" 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="" 4="" years)="" is="" expected="" to="" average="" 3%.="" assuming="" the="" costs="" and="" benefits="" are="" incurred="" at="" the="" end="" of="" the="" year,="" should="" the="" city="" buy="" the="" trucks?="" 3.="" this="" assignment="" extends="" the="" garbage="" truck="" problem="" from="" prompt="" 2.="" two="" other="" lenders="" provide="" alternative="" scenarios.="" alternate="" lender="" 1="" suggests="" that="" the="" inflation="" rate="" will="" be="" 4%="" and="" offers="" an="" interest="" rate="" of="" 7.5%,="" while="" alternate="" lender="" 2="" suggests="" that="" the="" inflation="" rate="" will="" be="" 1%="" and="" offers="" an="" interest="" rate="" of="" 6.5%.="" for="" all="" three="" sources,="" the="" interest="" rates="" are="" guaranteed="" if="" the="" decision="" is="" made="" in="" the="" next="" 90="" days.="" which="" of="" the="" following="" decisions="" should="" be="" made="" and="" why?="" a.="" the="" usual="" lender="" should="" be="" used="" because="" she="" offers="" a="" positive="" npv.="" b.="" alternate="" lender="" 1="" should="" be="" used="" because="" he="" offers="" the="" highest="" npv.="" c.="" the="" garbage="" trucks="" shouldn’t="" be="" purchased="" because="" there="" is="" a="" possibility="" of="" a="" negative="" npv.="" d.="" alternate="" lender="" 2="" should="" be="" used="" because="" most="" scenarios="" have="" a="" positive="" npv="" and="" she="" offers="" the="" highest="" npv="" under="" each="" scenario.="" a="" back="" ®="" @mbq="" xa="" 2="" e="" ®="" b="" ars="" 95500="" 0="" moan="" oe="" inne="" rend="" hae="" ©="" word|="" xx="" |="" sw="" grand(="" x="" |="" |="" studen="" x="" |="" sonin="" x="" |="" @="" screen:="" x="" |="" @="" halo="" x="" |="" og="" gand="" x="" |="" @="" chenz="" x="" |="" @="" adme="" x="" @="" hao="" x="" bhi)="" x="" |="" +="" vo="" o_o|="" x="" cg="" @&="" halo.geu.edu/resource/2e55626d-a43a-4b68-8832-09950da36{7e="" q="">< %«="" »="" 0="" d.="" alternate="" lender="" 2="" should="" be="" used="" because="" most="" scenarios="" have="" a="" positive="" npv="" and="" she="" offers="" the="" highest="" npv="" under="" each="" scenario.="" e.="" each="" solution="" is="" as="" good="" as="" any="" other.="" module="" 18:="" life="" cycle="" costing="" 1.="" what="" is="" life="" cycle="" costing="" (lcc)?="" what="" are="" the="" main="" issues="" in="" applying="" lcc="" in="" the="" government="" context?="" 2.="" the="" city="" administration="" is="" considering="" refurbishing="" the="" lighting="" system="" of="" its="" administration="" building.="" afier="" an="" initial="" investigation,="" the="" city="" procurement="" office="" has="" narrowed="" down="" the="" choices="" to="" the="" following="" two="" options:="" a.="" option="" 1="" is="" an="" ergolight="" system="" that="" costs="" $500,000="" to="" purchase="" and="" install.="" the="" energy="" cost="" for="" option="" 1="" is="" $20,000,="" and="" its="" maintenance="" cost="" is="" $2,000.="" grand="" canyon="" university"="" b.="" option="" 2="" is="" a="" conventional="" system="" that="" costs="" $100,000="" to="" purchase="" and="" install.="" the="" energy="" cost="" for="" option="" 2="" is="" $50,000,="" and="" its="" maintenance="" cost="" is="" $10,000.="" both="" systems="" are="" expected="" to="" last="" for="" 20="" years.="" assume="" that="" the="" discount="" rate="" is="" 4%="" and="" all="" future="" costs="" are="" paid="" at="" the="" end="" of="" the="" year.="" 3.="" which="" lighting="" system="" should="" the="" city="" select="" based="" on="" lcc="" considerations?="" aadnta="" 10.="" ca,="" ®="" €e="" mdoaozre="" 3="" b="" ars="" 95900="" *q="" ©="" word|="" xx="" |="" sw="" grand(="" x="" |="" |="" studen="" x="" |="" sonin="" x="" |="" @="" screen:="" x="" |="" @="" halo="" x="" |="" og="" gand="" x="" |="" @="" chenz="" x="" |="" @="" adme="" x="" @="" hao="" x="" bhi)="" x="" |="" +="" vo="" o_o|="" x="" cg="" @&="" halo.geu.edu/resource/2e55626d-a43a-4b68-8832-09950da36{7e="" q="">< %« » 0 module 19: capitalization and depreciation 1. what are the differences in how depreciation is treated by government and by companies in the private sector? 2. a city government purchases a new garbage truck for $120,000 this year. it is estimated that the truck will have a residual value of $20,000 and a useful economic life of 20 years. what would be the depreciation expense each year if the straight-line method were used. 3. why do organizations, government included, not capitalize all assets that last for more than one budgeting period, despite knowing that doing so would increase the accuracy of the accounting of assets and operations? 4. city hospital paid $500,000 for a picce of advanced diagnostic equipment. the total transportation and installation cost to make the equipment operational is $50,000. the staff-training cost to operate the new equipment is about $10,000. what should be the value of this capital asset? module 20: long-term financing 1. why do public organizations use municipal bonds to finance long-term capital projects? 2. a major urban center is planning to issue a $100 million, 20-year, semiannual-interest- paying municipal bond for the construction of a stadium, a. the interest rate is 5.875%, based on the economic and financial conditions of the city and city government. b. the design and issuance costs are estimated to be $10 million and 1%, respectively. c. what is the total interest paid if the city decides to adopt a level debt service structure? d. how much will the city still owe on this bond at the end of cach year? this assignment uses a rubric. please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. von are not reanired to suhmit this assionment ta t aneswrite ® @mbq xa 2 e 7 b ars 10000 wo %«="" »="" 0="" module="" 19:="" capitalization="" and="" depreciation="" 1.="" what="" are="" the="" differences="" in="" how="" depreciation="" is="" treated="" by="" government="" and="" by="" companies="" in="" the="" private="" sector?="" 2.="" a="" city="" government="" purchases="" a="" new="" garbage="" truck="" for="" $120,000="" this="" year.="" it="" is="" estimated="" that="" the="" truck="" will="" have="" a="" residual="" value="" of="" $20,000="" and="" a="" useful="" economic="" life="" of="" 20="" years.="" what="" would="" be="" the="" depreciation="" expense="" each="" year="" if="" the="" straight-line="" method="" were="" used.="" 3.="" why="" do="" organizations,="" government="" included,="" not="" capitalize="" all="" assets="" that="" last="" for="" more="" than="" one="" budgeting="" period,="" despite="" knowing="" that="" doing="" so="" would="" increase="" the="" accuracy="" of="" the="" accounting="" of="" assets="" and="" operations?="" 4.="" city="" hospital="" paid="" $500,000="" for="" a="" picce="" of="" advanced="" diagnostic="" equipment.="" the="" total="" transportation="" and="" installation="" cost="" to="" make="" the="" equipment="" operational="" is="" $50,000.="" the="" staff-training="" cost="" to="" operate="" the="" new="" equipment="" is="" about="" $10,000.="" what="" should="" be="" the="" value="" of="" this="" capital="" asset?="" module="" 20:="" long-term="" financing="" 1.="" why="" do="" public="" organizations="" use="" municipal="" bonds="" to="" finance="" long-term="" capital="" projects?="" 2.="" a="" major="" urban="" center="" is="" planning="" to="" issue="" a="" $100="" million,="" 20-year,="" semiannual-interest-="" paying="" municipal="" bond="" for="" the="" construction="" of="" a="" stadium,="" a.="" the="" interest="" rate="" is="" 5.875%,="" based="" on="" the="" economic="" and="" financial="" conditions="" of="" the="" city="" and="" city="" government.="" b.="" the="" design="" and="" issuance="" costs="" are="" estimated="" to="" be="" $10="" million="" and="" 1%,="" respectively.="" c.="" what="" is="" the="" total="" interest="" paid="" if="" the="" city="" decides="" to="" adopt="" a="" level="" debt="" service="" structure?="" d.="" how="" much="" will="" the="" city="" still="" owe="" on="" this="" bond="" at="" the="" end="" of="" cach="" year?="" this="" assignment="" uses="" a="" rubric.="" please="" review="" the="" rubric="" prior="" to="" beginning="" the="" assignment="" to="" become="" familiar="" with="" the="" expectations="" for="" successful="" completion.="" von="" are="" not="" reanired="" to="" suhmit="" this="" assionment="" ta="" t="" aneswrite="" ®="" @mbq="" xa="" 2="" e="" 7="" b="" ars="" 10000="">