Fundamentals of Engineering Economics 3rd Edition by Chan Park

Exercise 4

The U.S. government is considering building apartments for its employees working in a foreign country and currently living in locally owned housing.
A comparison of two possible buildings indicates the following:

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 as to the best option. (Do not assume a do-nothing alternative.)