Cornell has two options for upgrading their athletic facilities. The off$-$campus option costs only $$2\mathrm{.}5$ million, but it will require frequent bus service to those facilities at an annual cost that starts at $$200,000$ and increases by $5\%$ per year $($buses$,$ drivers$$ and mechanics$$ salaries, maintenance, road wear, etc.$).$ Improving the on$-$campus facilities will cost $$5\mathrm{.}0$ million, but no extra transportation costs are required. Both options involve an estimated annual maintenance cost of $$1$ million for about $30$ years before new facilities will again be needed. Using benefit$$cost ratio analysis, determine which option is more economically efficient. Use an interest rate of $10\%$ per year.

PLEASE USE EXCEL FORMULAS AND SOLVE THE PROBLEM

THE BOOK SAYS THE ANSWER IS $($ON CAMPUS, INCREMENTAL B$/$C IS $1\mathrm{.}2)$