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Q3: a) The future worth in year 8 for the cash flows shown is $34,000. At an interest rate of 10% per year, what is
Q3: a) The future worth in year 8 for the cash flows shown is $34,000. At an interest rate of 10% per year, what is the value, x, of the cash flow in year 4? 0 1 3 6 7 8 The value of x is determined to be $ 1000 1200 1400 1800 2000 2200 2400 b) The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will genera revenue of $4.1 million per year for the first 4 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 23 years, what is the present worth of the desalting option revenue at an interest rate of 8% per year? The present worth of the desalting option revenue at an interest rate of 8% per year is determined to be $
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