Two municipal cell tower designs are being considered by

Question

Question: 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