Use the Following Information to Answer Questions
the City

Multiple Choice

Use the following information to answer Questions
The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. $$\begin{array}{l}\begin{array} {lll } \text {Cost of tractor and equipment useful life 10 years }&\$220,000\\\text {Salvage value of tractor in 10 years }&20,000\\\text {Yearly cost of operator }&6,000\\\text {Yearly maintenance and upkeep, supplies, etc. }&3,000\\\text {Option \#2 }&\\\text {Yearly fees }&\$36,000\\\text {Option \#3 }&\\\text {Yearly cost of part-time labor }&\$32,000\\\text {Yearly cost of supplies, equipment repair, etc. }&1,000\\\text {Present value factors \( @ 6 \% \) }&\\\text {\( \$ 1 \) due in ten years }&.55839\\\text {Annuity of \( \$ 1 \) for 10 years }&7.36009\\\end{array}\end{array}$$
-Due to limited resources, Johnson City must select from among the following capital projects.Which project should the City select?

A) Court-ordered improvements to the City Jail.
B) Repairing the roof on City Hall.
C) Replacing an inefficient data processing system with a more efficient system.
D) Adding two new police cars to the fleet.