A local city that operates automobile parking facilities is evaluating a proposal that erect and operate a structure for parking in the city's downtown area. Three designs for the facilities to be built on available sites have been identified (all dollar are in thousands) All of the alternatives have a 30 year useful life: A B C Capital Investment $2,440 $880 $1,600 Annual O&M $410 $360 $310 Salvage Value $0 $0 $0 Annual Benefit $830 $750 $600 If the city's interest rate is 10%, Based on the analyis of incremental B/C analyis , alternative A should be selected.

1- True

2- False

A local city that operates automobile parking facilities is evaluating a proposal that erect and operate a structure for parking in the city's downtown area. Three designs for the facilities to be built on available sites have been identified (all dollar are in thousands) All of the alternatives have a 30 year useful life:

	A	B	C
Capital Investment	$2,440	$880	$1,600
Annual O&M	$410	$360	$310
Salvage Value	$0	$0	$0
Annual Benefit	$830	$750	$600

If the city's interest rate is 10%, Based on the analyis of incremental B/C analyis , alternative A should be selected.

True

False