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. 2 designs for a facility to be built have been identified (all values are in thousands of dollars):
Design A Design B
Cost of site $297 $122
Cost of building $2,339 $519
Annual fee collection $830 $750
Annual maintenance cost $410 $360
Service life30 years 30 years
Determine the incremental (A-B) benefit-cost ratio if annual interest rate is 10%