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Question 4: TimeValueOfMoneyPro124 A public utility commission requires that a trust fund be established by a private company wishing to build and maintain a water
Question 4: TimeValueOfMoneyPro124 A public utility commission requires that a trust fund be established by a private company wishing to build and maintain a water treatment plant for a small city. The company must deposit enough money to build the plant and then to operate and renovate the facility in perpetuity. The plant will cost $ 11000000 to build, has an annual operating expense of $ 800000, and must be renovated every 10 years at a cost of $ 1000000. The trust fund earns 8% interest. What amount must the company put in the trust fund? Question 1 What amount must the company put in the trust fund? Note: The renovation cost which occurs every 10 years can be converted into an annual cost (Round your answer to six decimal places.) number (rtol=0.01, atol=1e-08)
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