Economics Homework Help

Capital budget analysts in the State Department of Corrections would help develop and make recommendations for the capital budget plan.

Imagine you are a capital budget analyst for the State Department of Corrections. You are helping develop the capital budget plan for the agency and are tasked with analyzing two options to deal with a growing prison population.

Option 1

Construct 1,000 new prison beds in an additional wing at the state facility.

Option 2

Contract with a private prison company to rent 1,000 prison beds.

Review the Capital Budget Cost Data resource, which describes both options.

Write a 525- to 700-word recommendation on which option you recommend, including in the capital budget, and provide a detailed explanation of why you recommend this option.

Discuss the benefits and drawbacks of each option, including political considerations.

Identify short- and long-term cost considerations for both options.