Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 11% per year to determine which location to select, if any. Location North N South S Initial Cost, $ 1,360,000 2,900,000 Annual Cost, $ per Year 480.000 365,000 Disbenefits, $ per Year 70,000 24,000 Life, Years 00 The AB/C ratio is Select location N

Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 11% per year to determine which location to select, if any. Location North N South S Initial Cost, $ 1,360,000 2,900,000 Annual Cost, $ per Year 480.000 365,000 Disbenefits, $ per Year 70,000 24,000 Life, Years 00 The AB/C ratio is Select location N

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio
method at an interest rate of 11% per year to determine which location to select, if any.
Location
North N
South S
Initial Cost, $
1,360,000
2,900,000
Annual Cost, $ per Year
480,000
365,000
Disbenefits, $ per Year
70,000
24,000
Life, Years
The AB/C ratio is
Select location N

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