Problem
Two municipal cell tower designs are being considered by the city of Newton. If the city expects a modified benefit-cost ratio of 1.0 or better, which design would you recommend based on the data that follows? Assume repeatability. The city's cost of capital is 10% per year.
Verizon Cellgene
Initial investment (first cost) $75,000 $175,000
Useful life in years 6 12
Market value at end of useful life $20,000 $37,500
Annual benefits from operation $28,800 $38,800
Annual operating expenses $9,800 $11,300
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.