Question: 3. There are two candidate locations to construct a multipurpose sports arena. Use B/C ratio method at an interest rate of 9% per year, and

 3. There are two candidate locations to construct a multipurpose sports

3. There are two candidate locations to construct a multipurpose sports arena. Use B/C ratio method at an interest rate of 9% per year, and answer the following three questions. Location Initial cost, $ 1,500,000 3,100,000 Annual cost, $/year 520,000 420,000 Disbenefits, $/year 65,000 45,000 Site suitability, years Infinity Infinity 1) What is the total cost (C) of location A and location B? (10pts) O 660,000 and 700,000 O 135,000 and 280,000 O 590,000 and 470,000 O 520,000 and 420,000 QUESTION 11 2) What is the incremental B/C ratio? (10pts) O 0.650 O 1.670 O 0.456 O 1.139 3. There are two candidate locations to construct a multipurpose sports arena. Use B/C ratio method at an interest rate of 9% per year, and answer the following three questions. Location Initial cost, $ 1,500,000 3,100,000 Annual cost, $/year 520,000 420,000 Disbenefits, $/year 65,000 45,000 Site suitability, years Infinity Infinity 1) What is the total cost (C) of location A and location B? (10pts) O 660,000 and 700,000 O 135,000 and 280,000 O 590,000 and 470,000 O 520,000 and 420,000 QUESTION 11 2) What is the incremental B/C ratio? (10pts) O 0.650 O 1.670 O 0.456 O 1.139

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