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TheU.S.government is considering building apartments for government employees working in a foreign country and living in locally owned housing.A comparison of two possible buildings indicates

TheU.S.government is considering building apartments for government employees working in a foreign country and living in locally owned housing.A comparison of two possible buildings indicates the following: Building X Building Y Original investment by government agencies $8,000,000 $12,000,000 Estimated annual maintenance costs 240,000 180,000 Savings in annual rent now being paid to house employees 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.) Please solve using excel formulas and give formulas for reference

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