Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 10

A local city that operates automobile parking facilities is evaluating a proposal that it erect and operate a structure for parking in the city's downtown area. Three designs for a facility to be built on available sites have been identified in Table (all dollar figures are in thousands).
At the end of the estimated service life, whichever facility had been constructed would be torn down, and the land would be sold. It is estimated that the proceeds from the resale of the land will be equal to the cost of clearing the site. If the city's interest rate is known to be 10%, which design alternative would be selected on the basis of the benefit-cost criterion
TABLE P16.11