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 6% per year to determine which location to select, if any. Location North, N South, S Initial cost, $ 1.1 × 106 2.9 × 106 Annual cost, $ per year 480,000 390,000 Disbenefits, $ per year 70,000 40,000 Life, years ∞ ∞
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 6% per year to determine which location to select, if any. Location North, N South, S Initial cost, $ 1.1 × 106 2.9 × 106 Annual cost, $ per year 480,000 390,000 Disbenefits, $ per year 70,000 40,000 Life, years ∞ ∞
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 6% per year to determine which location
to select, if any.
Location North, N South, S
Initial cost, $ 1.1 × 106 2.9 × 106
Annual cost, $ per year 480,000 390,000
Disbenefits, $ per year 70,000 40,000
Life, years ∞ ∞
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