Q$.40$ Comell has two options for upgrading their ath$-$

$($c$)$

letic 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. Contributed by D$.$ P$.$ Loucks, Comell University