23. 2.99 Page 76San Antonio is considering various options for providing water in their 50-year plan, including

Question:

23. 2.99 Page 76San Antonio is considering various options for providing water in their 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 4 years, after which less production will decrease revenue each year by $50,000 per year. If the aquifer will be totally depleted in 25 years, what is the present worth of the desalting option at an interest rate of 6% per year? Solve using factors and a spreadsheet with a single NPV function. What is the numerical difference in the two results?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Basics Of Engineering Economy

ISBN: 9781259683312

3rd Edition

Authors: Leland T. Blank, Anthony Tarquin

Question Posted: