3. A city that operates automobile parking facilities is evaluating a proposal to erect and structure for parking in its downtown area. Three designs for a facility to be built on sites have been identified as follows: Design A Design B Design C Cost of site $240,000 $180,000 $200,000 Cost of building $2,200,000 $700,000 $1,400,000 Annual fee collection $830,000 $750,000 $600,000 Annual maintenance cost $410,000 $360,000 $310,000 Service life 30 years 30 years 30 years At the end of the estimated service life, the selected facility would be torn down and the land would be sold. It is estimated that the proceeds from the resale of the land will be equal to the cost of clearing the site. The city's interest rate is known to be 10%. a. Find the benefit-cost ratio for each design. b. Which design alternative would you select on the basis of the benefit-cost ratio on incremental investment? c. Find the profitability index for each design d. Which design alternative would you select on the basis of the profitability index on incremental investment? Design Design B Incremental Design A Design C BC(10%) Pl(10%)