The U.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...

The U.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:

Assuming no do-nothing alternative, which project would you select on the basis of the benefit–cost ratio BC(i) on incremental investment?

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.)