1] The City of San Antonio is considering various options for providing water in its 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 5 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 24 years, what is the present worth of the desalting option revenue at an interest rate of 5% per year? The present worth of the desalting option revenue at an interest rate of 5% per year is determined to be $ .

2] Calculate the present worth of all costs for a newly acquired machine with an initial cost of $40,000, no trade-in value, a life of 11 years, and an annual operating cost of $17,000 for the first 6 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year. The present worth of all costs for a newly acquired machine is determined to be $