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The annual fuel costs to operate a small solid-waste treatment plant for the period 2020-2025 are projected to be SR2 million without consideration for any
The annual fuel costs to operate a small solid-waste treatment plant for the period 2020-2025 are projected to be SR2 million without consideration for any future inflation. The best estimates indicate that the annual inflation-free interest rate will be 7% and that the consumer price indices for years 2020 and 2025 are 250 and 305.256, respectively. Assuming that the current year 2020 is the base year and that the first payment is made at the end of year 2021, find the present equivalent value of fuel costs using actual dollar analysis?
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