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2. A local government is considering two alternatives for automobile parking facilities. Specific data are as follows: Design B Design A $1000 Cost of site $1500 Cost of building Annual fee collection $2200 $850 $2500 $750 $350 Annual maintenance cost $400 Service life 2 years 3 years Projects use an interest rate of 10%. Compare these designs over an analysis period of 6 years sing net present worth and recommend which design to choose.

2. A local government is considering two alternatives for automobile parking facilities. Specific data are as follows: Design B Design A $1000 Cost of site $1500 Cost of building Annual fee collection $2200 $850 $2500 $750 $350 Annual maintenance cost $400 Service life 2 years 3 years Projects use an interest rate of 10%. Compare these designs over an analysis period of 6 years sing net present worth and recommend which design to choose.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2. A local government is considering two alternatives for automobile parking facilities. Specific data are as follows: Design A $1000 $2200 Design B $1500 Cost of site Cost of building Annual fee collection $2500 $750 $350 $850 Annual maintenance cost $400 Service life 2 years 3 years Projects use an interest rate of 10%. Compare these designs over an analysis period of 6 years using net present worth and recommend which design to choose.
Transcribed Image Text:2. A local government is considering two alternatives for automobile parking facilities. Specific data are as follows: Design A $1000 $2200 Design B $1500 Cost of site Cost of building Annual fee collection $2500 $750 $350 $850 Annual maintenance cost $400 Service life 2 years 3 years Projects use an interest rate of 10%. Compare these designs over an analysis period of 6 years using net present worth and recommend which design to choose.
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