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Q& Construction Company is one of the biggest construction companies that can build giant structures such as towers, bridges, tunnels, and etc. The company become
Q& Construction Company is one of the biggest construction companies that can build giant structures such as towers, bridges, tunnels, and etc. The company become a part of really important projects from different countries of the world and also prepares very interesting projects to solve specific construction problems. The managers of the company basically decide to projects that can provide popularity for the firm and important amount of profit. Nowadays, they studied on a specific project. There is an important river in the south east of the North Kingdom. This river is known as the "Dark" river that has been used for drink water and irrigation of agricultural lands. The government of the North Kingdom wanted to build a new dam on this river to increase the efficient use of the river in order to avoid water scarcity in summer days and also transport the water far agriculture lands. The managers of the company proposed a dam and irrigation system project to the government. The financial plan was examined by the government and accepted. According to this plan, a total of 15 million usd will be used when the project is first started (time=0), then a constant amount 10 million usd will used each year from year 1 to 3. The main dam will prepared at the end of the year 3. After 2 years from the completion of the dam project (time=6), irrigation system project will be started. The initial cost of the irrigation system will be 5 million usd at year 6 then decreased by 1 million usd each year from year 7 to 10. (i=%10 per year) 4) The irrigation system will be used when the year is equal to 7 and started to help saving extra money for government, too. The savings will be 1 million usd for the year 7 and increased by 1 million usd from year 8 to 10. How will the present worth of the project change for government? (The case in question is still valid)
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