4)

Urban infrastructures that support a community are sometimes in the news; we seldom think about them except when there is a disruption of service. A small city has just replaced a wate storage tank and associated feeders from it throughout the community. It is estimated that t annual service requirements will be $40,000 the first year, with $10,000 increases in each subsequent year for 8 years. The community's time value of money is 4%.