ocations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio ethod at an interest rate of 9% per year to determine which location to select, if any. Location Initial Cost, $ Annual Cost, $ per Year Disbenefits, $ per Year Life, Years the AB/C ratio isl North N 2,160,000 480,000 70,000 00 South S 2,900,000 445,000 57,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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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 9% per year to determine which location to select, if any.
Location
Initial Cost, $
Annual Cost, $ per Year
Disbenefits, $ per Year
Life, Years
The AB/C ratio is
North N
2,160,000
480,000
70,000
00
South S
2,900,000
445,000
57,000
00
Transcribed Image Text: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 9% per year to determine which location to select, if any. Location Initial Cost, $ Annual Cost, $ per Year Disbenefits, $ per Year Life, Years The AB/C ratio is North N 2,160,000 480,000 70,000 00 South S 2,900,000 445,000 57,000 00
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