Question: 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

 There are two potential locations to construct a recreation center, Based

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

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