There are two potential locations to construct an urgent care walk-in clinic to serve rural residents. Use B/C analysis to determine which location, if any, is better at an interest rate of 8% per year. (Note: See Problem 9.55 for more on this analysis.) Location 1 2 Initial cost, $ 1,200,000 2,000,000 Annual M&O cost, $/year 80,000 75,000 Annual benefits, $/year 520,000 580,000 Annual disbenefits, $/year 90,000 140,000 Site suitability, years 10 20
There are two potential locations to construct an urgent care walk-in clinic to serve rural residents. Use B/C analysis to determine which location, if any, is better at an interest rate of 8% per year. (Note: See Problem 9.55 for more on this analysis.) Location 1 2 Initial cost, $ 1,200,000 2,000,000 Annual M&O cost, $/year 80,000 75,000 Annual benefits, $/year 520,000 580,000 Annual disbenefits, $/year 90,000 140,000 Site suitability, years 10 20
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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There are two potential locations to construct an
urgent care walk-in clinic to serve rural residents.
Use B/C analysis to determine which location, if
any, is better at an interest rate of 8% per year.
(Note: See Problem 9.55 for more on this analysis.)
Location 1 2
Initial cost, $ 1,200,000 2,000,000
Annual M&O cost, $/year 80,000 75,000
Annual benefits, $/year 520,000 580,000
Annual disbenefits, $/year 90,000 140,000
Site suitability, years 10 20
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