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Business, 30.10.2020 16:50 mcgowans348

The Department of Defense is considering three sites in the National Wildlife Preserve for extraction of rare metals. The cash flows associated with each site are summarized. The extraction period is limited to 5 years and the interest rate is 10% per year. Use the B/C method to determine which site, if any, is acceptable. The monetary unit is $ million. Site A B C Initial Cost, $ 50 90 200 Annual Cost, $/Year 3 4 6 Annual Benefits, $/Year 20 29 61 Annual Disbenefits, $/Year 0.5 2 2.1

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