PTF97.S1.Q18 - Mayor Tyler: In 1982 the courthouse that Roseville

thedramallama

Okay, so I eliminated D right away and was stuck between answer choice B and E. Is D correct because Mayor Tyler said "in 1982 when I first showed how the building would relieve the overcrowding we were experiencing" and Councillor Simon said "Roseville has saved by not having to maintain an underutilized courthouse for 10 years"?

drbrown2

@thedramallama
Just looked at the question and yes D is correct for the reason you gave. It is so subtle. Mayor Tyler said they needed it and Councillor Simon said it's a good thing it wasn't built (both because it would have been underutilized and because of the $ savings when adjusted for inflation and maintenance.

The rest can be eliminated pretty easily, but for sure the correct answer is difficult to see at first.
-A is wrong because the courthouse is being built according to the Mayor and that is not disputed by the Councillor.
-B is wrong because the mayor never discusses inflation
-C is wrong because the idea of who is responsible for the reports is never introduced
-E is wrong because the $4 million idea is about how much more it is costing to build now than 10 years ago, and not about how much it would actually cost to maintain the building for that time period. I think they are trying to trick us into doing math to figure out if the city is actually saving money or not by building now instead of 10 years ago.

An easier answer choice would have looked something like the point at issue is whether "Roseville has benefitted financially from waiting until now to build the courthouse." That would be something Councillor Simon would say, and something that the Mayor would disagree with.

thedramallama

@drbrown2 Thank you so much for your help! I really appreciate it

Dastin Kartoum

Thanks for the explanation. However coming from a Finance background this question seems as if the two parties are arguments differ over the NPV to the investment. The Mayor thinks that the cost of the building is $4 Million Dollars more expensive and the Councilor believes that the delay has had a positive NPV since the $26 Million is now worth $37 Million and the new building only costs $30 Million.

Because of this I chose B as my answer.