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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
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 generate revenue of $4.1 million in year 7 and then declining production will decrease revenue by 10% each year. If the aquifer will be totally depleted in 20 years, what is the present worth of the desalting option at an interest rate of 6% per year?
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