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answer a,b, and c. Chemosys water engineering Inc. plan to construct water purification plant in Rochester, New Jersey, to supply portable water to 500,000 New

answer a,b, and c. image text in transcribed
Chemosys water engineering Inc. plan to construct water purification plant in Rochester, New Jersey, to supply portable water to 500,000 New Jersey homes. Chemosys will spend $1.25 billion in constructing the plant and $450000 per year in operating it. The salvage depreciation rate, d, estimated for the equipment and other disposable items is 12%. Chemosys intends to run the project for 12 years before they transfer the operation to the county government. A complete overhaul of the plant will be conducted at the end of year 7 and 10 at an extra cost of $386300 and 525000 respectively. Considering an interest rate of 10% per year: Salvage = Initial cost (1d)n, where n is the number of years of operation. a) The engineering economy symbols and their value for each option. b) Construct the Cash flow diagram c) Calculate the Present and Future Worth of the Cash flow Estimates

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