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A city plans a pipeline to transport water from a distant watershed area to the city. The pipeline will cost $6 million and will have
A city plans a pipeline to transport water from a distant watershed area to the city. The pipeline will cost $6 million and will have an expected life of 50 years. The city expects to keep the water line in service indefinitely. Compute the capitalized cost, assuming 6% interest, together with P = A/i. Compute the present value P for the following cash flow of revenue, in that i = 12%
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