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Answer

B / C Ratio

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1. Four different 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%. A B C D Building cost ($2,00,000) ($2,50,000) ($1,80,000) ($2,90,000) Cash flow 22,000 35,000 19,500 42,000 Life, years 25 25 25 25