Cost of site

Cost of building Annual fee collection

Annual maintenance cost Service life

Answer

Design A $ $297$

$ $1,964$ $$830$

$$410$

$30$ years

Design B $ $160$

$ $562$ $$750$

$$360$

$30$ years$$Save

Question $33(5$ points$)$

The city of Fredericton operates automobile parking facilities and is evaluating a proposal to erect and operate a structure for parking in the city's downtown area. Two designs for a facility to be built have been identified $($all values are in thousands of dollars$)$:

$$Calculate the incremental $($A$-$B$)$ benefit$-$cost ratio if annual interest rate is $10\%$