Company is considering two locations for new park

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The Bells Fish and wildlife company is considering two locations for new park. Location E will require an investment of $3million and $50000 per year to maintain. Location W would cost $7 million to construct but the BFWC would receive an additional $25000 per year in park fees. The operating cost of location W will be $65000 per year. The revenue to park concessionaires will be $500000 per year at location E and $700000 at location W. The disbenefit associated with each location are $30000per year for location E and $40000 location W. Assume the park will be maintained indefinitely. Use an interest rate of 12% per year to determine which location if either, should be selected on the basis of A) the B/C method B) modified B/C method.

Reference no: EM131950102

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