ACC- Four different independent building locations have been suggested
Question # 00009168
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Updated on: 02/26/2014 05:21 AM Due on: 02/26/2014
Four different independent building locations have been suggested, of which only one will be selected. See table for detail data. Apply incremental B/C ratio analysis to select the best alternative. The MARR is 6%. Which is the best alternative?
A B C D
Initial building cost $-200,000 $-250,000 $-180,000 $-290,000
Annual cash flow +22,000 +35,000 +19,500 +42,000
Life in years 25 25 25 25
A B C D
Initial building cost $-200,000 $-250,000 $-180,000 $-290,000
Annual cash flow +22,000 +35,000 +19,500 +42,000
Life in years 25 25 25 25
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Rating:
/5
Solution: ECO - Incremental BC Ratio Solution