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In several cities, the government is going ahead with

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Re: In several cities, the government is going ahead with [#permalink] New post 23 Jan 2013, 15:08
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sharmila79 wrote:
carcass wrote:
A is the only make sense as assumption

the other choices do not hold any water

A) Adaption of vacant office space to meet the governments requirements, if possible, would not make leasing such space a more cost effective alternative to new construction.

B) the government prefers leasing facilities to owning them in cases where the two alternatives are equally cost effective

C) I f facilities available for leasing come very close to meeting the governments requirements for facilities the government needs, the government relax its own requirements slightly and consider those facilities in compliance.

D) the government's construction projects would not, on being completed, add to the stock of the facilities available for leasing in the cities concerned.

E) before embarking on any construction project, the government is required by law to establish beyond any reasonable doubt that there are no alternatives that are more cost effective.

for the reason in A the gov spend more money but is not guilty


What is the conclusion here? Is it "Govt. is not guilty of making any new construction"?



In several cities, the government is going ahead with ambitious construction projects despite the high office-vacancy rates in those cities. The vacant offices, though available for leasing, unfortunately do not meet the requirement for the facilities needed, such as court houses and laboratories. The government, therefore, is not guilty of any fiscal wastefulness.

this is the conclusion
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Re: In several cities, the government is going ahead with [#permalink] New post 23 Jan 2013, 15:29
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sharmila79 wrote:
carcass wrote:
A is the only make sense as assumption

the other choices do not hold any water

A) Adaption of vacant office space to meet the governments requirements, if possible, would not make leasing such space a more cost effective alternative to new construction.

B) the government prefers leasing facilities to owning them in cases where the two alternatives are equally cost effective

C) I f facilities available for leasing come very close to meeting the governments requirements for facilities the government needs, the government relax its own requirements slightly and consider those facilities in compliance.

D) the government's construction projects would not, on being completed, add to the stock of the facilities available for leasing in the cities concerned.

E) before embarking on any construction project, the government is required by law to establish beyond any reasonable doubt that there are no alternatives that are more cost effective.

for the reason in A the gov spend more money but is not guilty


What is the conclusion here? Is it "Govt. is not guilty of making any new construction"?




IMO

Argument is as follow:

Conclusion:The governments decision to build the new construction is not a waste of money,

Because (Insert assumption)...

"Adaption of vacant office space to meet the governments requirements, if possible, would not make leasing such space a more cost effective alternative to new construction"

@carcass..Do you agree?
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Re: In several cities, the government is going ahead with [#permalink] New post 23 Jan 2013, 15:56
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yup

Constructing building is not a waste of money, but the gov can do nothing in this scenario so it has to rent spaces for officies --------> the gov has no guilty for the money spent.

Of course you are right about your ghost conclusion in somehow.

During the exam or practice, though, relying on the real conclusion; that is the landmark "The government, therefore, is not guilty of any fiscal wastefulness."
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Re: In several cities, the government is going ahead with [#permalink] New post 26 Jan 2013, 09:25
If Choice A was not there, then is option D a correct choice? Because, option D states that the govt. will not feel guilty because the more govt. constructions coming up is not going to pile up the offices more. But, option A brings in one more dimension to the whole scenario by bringing renovation to the old offices. So, basically, the choice says that since renovation of old offices is going to be more expensive than constructing new buildings, the govt. will not feel guilty upon spending on new projects.
@carcass, Please correct me if I got the whole thing wrong. I feel assumptions are easy, but not all of them, like this one. I am trying to understand and do better how much ever complicated these questions are. If my reasoning is good and logical I feel I can do better.
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Re: In several cities, the government is going ahead with [#permalink] New post 26 Jan 2013, 14:09
sharmila79 wrote:
If Choice A was not there, then is option D a correct choice? Because, option D states that the govt. will not feel guilty because the more govt. constructions coming up is not going to pile up the offices more. But, option A brings in one more dimension to the whole scenario by bringing renovation to the old offices. So, basically, the choice says that since renovation of old offices is going to be more expensive than constructing new buildings, the govt. will not feel guilty upon spending on new projects.
@carcass, Please correct me if I got the whole thing wrong. I feel assumptions are easy, but not all of them, like this one. I am trying to understand and do better how much ever complicated these questions are. If my reasoning is good and logical I feel I can do better.



Choice D seems to imply that the extra supply of office spacing would not have impact from a $$ standpoint. But it still does not address whether it is best to lease or to build a new construction.

Look at this question with your "Decision Analyst" thinking cap. What makes more sense? Lease or build?

TIM: "Should the city lease or build the new project? Despite the fact that there is vacant office space that can be used"

Jose:"Well, keep in mind that the the extra supply will not hurt us economically"

Tim: "That does not answer the question. Is it more expensive to build or to use the existing space."

Jose:"Oh sorry about that, it makes more sense to build because after taking into account the added cost of adapting the vacant buildings to work for the courts, building makes more sense financially.
Re: In several cities, the government is going ahead with   [#permalink] 26 Jan 2013, 14:09
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