Problem
A town in northern Colorado is planning on investing in a water purification system. Three mutually exclusive systems have been proposed, and their capital investment costs and net annual benefits are the following (salvage values are negligible).
System
EOY A B C
0 -$160,000 -$245,000 -$200,000
1 80,000 120,000 80,000
2 70,000 100,000 80,000
3 60,000 80,000 80,000
4 50,000 60,000 80,000
If the town's MARR is 10% per year, use the B-C ratio method to determine which system is best.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.