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    Adams Independent School District: evaluate three offers

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    The Adams Independent School District desires to sell a parcel of unimproved land that it does not need. Its three best offers are as follows: from State Department of Public Safety (DPS), $2.3 million; from Second Baptist Church, $2.2 million; and from Baker Chevrolet Company, $2.1 million. DPS would use the property for a new state highway patrol barracks; Second Baptist would start a church school; and Baker would open a car dealership.

    If you are the financial advisor for the school disctrict, which offer would you prefer? Why?

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    Solution Preview

    If all other factors are equal, the decision would be simple: take the highest offer. However, secondary factors make the decision not quite so clear-cut:

    By definition, an independent school district is one in which the boundaries do not necessarily follow county or city boundary lines. Because of that fact, the parents of attendees could live in more than one county. As a result, it is possible that the independent school district (ISD) could be more autonomous than other organizations ...

    Solution Summary

    In a 328 word solution, the three options are discussed with both positive and negative views to each. There is a procedure recommended to help with the decision, and also a conclusion stated.