There are two potential locations to construct an urgent care walk-in clinic to serve rural residents. Use B/C analysis to determine which location, if any, is better at an interest rate of 8% per year.
 FIGURE 1.png)
Location 1 vs DN: B = $520,000
D = $90,000
C = 1,200,000(A/P,8%,10) + 80,000
= 1,200,000(0.14903) + 80,000
= $258,836
B/C = (520,000 – 90,000)/258,836
= 1.66 eliminate DN
Location 2 vs 1: ?B = 580,000 - 520,000
= $60,000
?D = 140,000 - 90,000
= $50,000
?C = [2,000,000(A/P,8%,20) + 75,000] – 258,836
= [2,000,000(0.10185) + 75,000] - 258,836
= $19,864
?B/C = (60,000 –50,000)/19,864
= 0.50 eliminate 2
Select Site 1
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