1) CALCULATE THE B/C RATIO AND STATE WHETHER THE PROJECT IS WORTH DOING (YES/NO). Villa Homes wants to assess the profitability of a new project in which it builds a community center inside a growing...

Extracted text: 1) CALCULATE THE B/C RATIO AND STATE WHETHER THE PROJECT IS WORTH DOING (YES/NO). Villa Homes wants to assess the profitability of a new project in which it builds a community center inside a growing neighborhood. Assume that the company leases the equipment it needs for $100,000, that the inflation rate is 4% and that the company expects to see a $200,000 annual profit increase over the next three years. Villa Homes can use the BCR formula to calculate the overall value of this new project.