Four different building locations have been suggested, of which only one will be selected. See table for detail data. Apply incremental B/C ratio analysis to select the best alternative. The MARR is 6%. A                     B                     C                     D   Building cost             $-200,000      $-250,000      $-180,000      $-290,000 Cash flow                     +22,000         +35,000         +19,500         +42,000 Life, years                              25                    25                    25                    25

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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QUESTION 11

Four different building locations have been suggested, of which only one will be selected. See table for detail data. Apply incremental B/C ratio analysis to select the best alternative. The MARR is 6%.

A                     B                     C                     D

 

Building cost             $-200,000      $-250,000      $-180,000      $-290,000

Cash flow                     +22,000         +35,000         +19,500         +42,000

Life, years                              25                    25                    25                    25

 

plz answer correct calculation asap plz 

Dont answer by pen pepar 

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