Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 7

The U.S. government is considering building apartments for government employees working in a foreign country and living in locally owned housing. A comparison of two possible buildings is given in Table.
TABLE 9
Assume the salvage or sale value of the apartments to be 60% of the first investment. Use 10% and a 20-year study period to compute the B/C ratio on incremental investment, and make a recommendation. (Assume no do-nothing alternative.)