Question
*** Only need answer to part d with proper explanation*** Fifteen families live in Willow Canyon. Although several water wells have drilled, none has produced
*** Only need answer to part d with proper explanation***
Fifteen families live in Willow Canyon. Although several water wells have drilled, none has produced water. The residents take turns driving a water truck to fill station in a nearby town. The water is hauled to a storage tank in Willow Canyon. Last year truck and water expenses totaled $6200. What rate of return would the Willow Canyon residents receive on a new water supply pipeline costing $100,000 that would replace the truck? The pipeline is considered to last (a) Forever (b) 100 years. (c) 50 years. (d) Would you recommend that the pipeline be installed? Explain.
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