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Question: three locations for a water tower for the village of...

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Three locations for a water tower for the village of Wideplace are being considered. Initial construction costs and annual operating costs for these sites are given in the table. Assume that the water tower will last forever and that a site must be selected. Using benefit/cost ratio analysis and an interest rate of 9.53101798% per year compounded continuously, which site should be chosen? (Please clearly show which B/Cratio you are using) North Downtown Southeast Site 4000000 Initial Cost 6000000 5000000 360000 280000 320000 Annual Cost 610510 610510 610510 M&O (every 5 years) Annual Benefit 980000 1100000 1060000 Total Cost/yr Total Benefit/yr B/C ratio

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