Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 17, Problem 26P
To determine
Identify the correct option out of the given statements.
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a) The development budget of a municipality in Ghana includes expenditure on Feeder Roads, Schools and Water supply. The expenditure on roads, schools and water supply are in the ratio 7:15:2. If the expenditure on roads is GH¢28,000,000.00, Find the expenditure on; (i) Schools(ii) Water supply(iii) What is the total budget for these three projects
b) The cost of maintaining the municipality libraries is GH¢900,000.00 and this is met from the expenditure on schools. What percentage correct to three significant figures, of the expenditure on schools is spent on maintaining libraries.
A regional airport is considering installing a new baggage handling system. Two different vendors submitted bids on the system. The airport is to replace its current system. The cash flows that describe each baggage handling system with respect to the current system are given below.
Which of the following statements is correct?(a) Vendor B is preferred as long as the airport's interest rate is less than or equal to 15.73%(b) Vendor B is preferred as long as the airport's interest rate is more than 5%.(c) Vendor Bis preferred as lo ng as the airport 's interest rate is less than 7%.(d) Vendor A is preferred if the airport's interest rate is more than 5.73%.
Suppose the extra cost for a municipality to enact a "no texting while driving" law is $15,000 per year. Then, the municipality should
enact the law if it receives a total benefit from all of its traffic laws of $15,000 per year.
A) True
B) False
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