Question: please help with BC ratio analysis. There are two potential locations to construct a recreation center, Based on the given cash flow information for these

please help with BC ratio analysis.

There are two potential locations to construct a recreation center, Based on the given cash flow information for these two alternatives, which one would you recommend to be selected using B/C ratio analysis? Interest rate is 6% per year, compounded quarterly, Location Location 1 Location 2 Initial Cost, $ 1,100,000 1,500,000 Annual O&M cost: $/yr 60,000 40,000 Annual benefit; $/yr 550,000 620,000 Annual disbenefit; $/yr 80,000 95,000 Useful life: years 10 20 ho

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