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Question#1 The completed dam will generate water sales and tourism income of $200000 per year. The life of the dam is estimated at 40 years.
Question#1 The completed dam will generate water sales and tourism income of $200000 per year. The life of the dam is estimated at 40 years. If the projected average interest rate over this 40 years is 6.5%, calculate the present value of this income stream. (Round your answer to the nearest thousand dollars, i.e. $3,215,500.333 = 3216000. Do not include the $ sign or any spaces or commas.) Answer: Question #2 You have analysed the returns from a retail development proposal and predict an income stream of $70000 per year. The developer is only interested in the returns over the first 9 years, so the life of the development is taken as 9 years. If the expected interest rate over this period is 5% per annum what would the value of this income stream be in present worth dollars? (Round your answer to the nearest whole number, i.e. $110,536.07 = 110536. Do not include the $ sign or any spaces or commas.)
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