Exercise Week 14 (Benefit Cost Ratio) TASCO Logistics is evaluating a two proposal for design of their warehouse facilities. Numerous design proposals were considered. Data for the two best proposals is presented below. Design X RM2 000 000 Design Y RMI 800 000 750 000 550 000 Cost of site and construction Annual revenue from parking fees Annual maintenance cost Service life 300 000 200 000 15 years 15 years At the end of each five years period the warehouse will require a maintenance cost. The cost for design A is estimated to be RM 250 000 and for design B, RM 120 000. At the end of the service life the warehouse will be torn down and will be sold. Demolition costs and proceeds from the warehouse are presented below. Design X RM 250 000 Demolition costs Proceeds from sale of land Design Y RM 280 000 RM 280 000 RM 250 000 If the city's interest rate is 15%, determine the B/C ratio of each design proposal and choose the best and economically benefit cost ratio for TASCO warehouse project. Justify your answer.