A Small Town Is Considering Two Potential Alternatives for a Garbage

Multiple Choice

A small town is considering two potential alternatives for a garbage collection system. The following cost data has been compiled. If the interest rate is 6%, Compute the ?B /?C ratio.
$$\begin{array} { | l | c | c | } \hline \text { Year } & \text { System A } & \text { System B } \\\hline 0 & - \$ 250,000 & - \$ 375,000 \\\hline 1 - 30 & 20,000 & 32,000 \\\hline 30 & 40,000 & 50,000 \\\hline\end{array}$$

A) 0.96
B) 1.09
C) 2.27
D) 1.34