8.4 The U.S. government is considering building apartments for government em- ployees working in a foreign country and living in locally owned housing. A comparison of two possible buildings is given in Table P8.4. TABLE P8.4 Original investment by government agencies Estimated annual maintenance costs Savings in annual rent now being paid to house employees Building X Building Y $8,000,000 $12,000,000 $240,000 $180,000 $1,960,000 $1,320,000 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. (Assume no do-nothing alternative.)