i=2

Q1: Basrah municipality is considering building a new car park near Times Square. No funds are available (overhead rates are under pressure) and the new facility would have to pay for itself from parking fees over a 15-year period. A minimum rate of return of i=(Your Number) % is required for the project. The architect has developed four alternative designs for different numbers of parking levels in the structure. Based on the income and cost data in the Table below, how many levels should be built? Number of Levels Cumulative construction costs ($) Annual operating Income per year costs ($) ($) 1 600,000 35,000 100,000 2 2,200,000 60,000 350,000 3 3,600,000 80,000 570,000 4 4,800,000 105,000 750,000