Use the document “Cost Benefit Analysis Worksheet” to complete this assignment.While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.You are not required to submit this assignment to LopesWrite.Benchmark Information:This benchmark assignment assesses the following programmatic competencies: Masters in Public Administration1.5: Use technology to manage data and organize information and 2.1: Conduct a cost benefit analysis to determine the best allocation of public resources.ADM-626 Public Budgeting and Financial Management 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 the LoudCloud dropbox. Module 17: Cost-Benefit Analysis What is cost-benefit analysis? What are the main steps in conducting cost-benefit analysis?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?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?The usual lender should be used because she offers a positive NPV.Alternate lender 1 should be used because he offers the highest NPV.The garbage trucks shouldn’t be purchased because there is a possibility of a negative NPV.Alternate lender 2 should be used because most scenarios have a positive NPV and she offers the highest NPV under each scenario.Each solution is as good as any other. Module 18: Life Cycle Costing What is life cycle costing (LCC)? What are the main issues in applying LCC in the government context?The city administration is considering refurbishing the lighting system of its administration building. After an initial investigation, the city procurement office has narrowed down the choices to the following two options: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.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.Which lighting system should the city select based on LCC considerations? Module 19: Capitalization and Depreciation What are the differences in how depreciation is treated by government and by companies in the private sector?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.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?City Hospital paid $500,000 for a piece 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 Why do public organizations use municipal bonds to finance long-term capital projects?A major urban center is planning to issue a $100 million, 20-year, semiannual-interest-paying municipal bond for the construction of a stadium.The interest rate is 5.875%, based on the economic and financial conditions of the city and city government.The design and issuance costs are estimated to be $10 million and 1%, respectively.What is the total interest paid if the city decides to adopt a level debt service structure?How much will the city still owe on this bond at the end of each year? This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. You are not required to submit this assignment to LopesWrite. This benchmark assignment assesses the following programmatic competencies: 1.5: Use technology to manage data and organize information and 2.1: Conduct a cost benefit analysis to determine the best allocation of public resources.

Prompt You have been recently hired as a junior analyst by D.M. Pan Real Estate Company. The sales team has tasked you with preparing a report that examines the relationship between the selling price of properties and their size in square feet. You have been provided with a Real Estate County Data document that includes properties sold nationwide in recent years. The team has asked you to select a region, complete an initial analysis, and provide the report to the team. Note: In the report you prepare for the sales team, the response variable (y) should be the median listing price and the predictor variable (x) should be the median square feet. Specifically you must address the following rubric criteria, using the Module Two Assignment Template: Generate a Representative Sample of the Data  Select a region and generate a simple random sample of 30 from the data. Report the mean, median, and standard deviation of the median listing price and the median square foot variables. Analyze Your Sample Discuss how the regional sample created is reflective of the national market.  Compare and contrast your sample with the population using the National Statistics and Graphs document. Explain how you have made sure that the sample is random. Explain your methods to get a truly random sample. Generate Scatterplot Create a scatterplot of the x and yvariables noted above and include a trend line. Observe patterns Answer the following questions based on the scatterplot: Define x and y. Which variable is useful for making predictions? Is there an association between x and y? Describe the association you see in the scatter plot. What do you see as the shape (linear or nonlinear)? If you had a 1,200 square foot house, based on the regression equation in the graph, what price would you choose to list at? Do you see any potential outliers in the scatterplot?  Why do you think the outliers appeared in the scatterplot you generated? What do they represent? PART 2: Prompt This assignment picks up where the Module Two assignment left off and will use components of that assignment as a foundation. You have submitted your initial analysis to the sales team at D.M. Pan Real Estate Company. You will continue your analysis of the provided Real Estate County Data spreadsheet using your selected region to complete your analysis. You may refer back to the initial report you developed in the Module Two Assignment Template to continue the work. This document and the National Statistics and Graphsspreadsheet will support your work on the assignment. Note: In the report you prepare for the sales team, the dependent, or response, variable (y) should be the median listing price and the independent, or predictor, variable (x) should be the median square feet. Using the Module Three Assignment Template, specifically address the following: Regression Equation: Provide the regression equation for the line of best fit using the scatterplot from the Module Two assignment. Determine r: Determine r and what it means. (What is the relationship between the variables?) Determine the strength of the correlation (weak, moderate, or strong). Discuss how you determine the direction of the association between the two variables. Is there a positive or negative association? What do you see as the direction of the correlation? Examine the Slope and Intercepts:Examine the slopeb1b1 and intercept b0b0 Draw conclusions from the slope and intercept in the context of this problem. Does the intercept make sense based on your observation of the line of best fit? Determine the value of the land only. Note: You can assume, when the square footage of the house is zero, that the price is the value of just the land. This happens when x=0, which is the y-intercept. Determine the R-squared Coefficient:Determine the R-squared value. Discuss what R-squared means in the context of this analysis. Conclusions: Reflect on the Relationship: Reflect on the relationship between square feet and sales price by answering the following questions: Is the square footage for homes in your selected region different than for homes overall in the United States? For every 100 square feet, how much does the price go up (i.e., can you use slope to help identify price changes)? Use the regression equation to estimate how much you would list your house for if it was 1,200 square feet. What square footage range would the graph be best used for?