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Adelphi University
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PAD 505 Week 5 Discussion 1
"Life Cycle Costing"Â Please respond to the following:
·        From the first e-Activity, discuss at what point an administrator should decide when the product should be terminated during the life cycle analysis. Justify your response with reasons and an example.
·        Discuss two to three (2-3) actions an administrator should review consistently to alleviate over budgeting for operating and maintenance costs of a capital project.
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PAD 505 Week 5 Discussion 2
"Cost-Benefit Analysis"Â Please respond to the following:
·        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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