Question
West Lafayette is spending $28 million on upgrades to the existing wastewater treatment plant with the addition of tertiary UV treatment. The expected life of
West Lafayette is spending $28 million on upgrades to the existing wastewater treatment plant with the addition of tertiary UV treatment. The expected life of this new treatment phase is expected to last 60 years, and it will have a market value of $5 million at the end of its useful lifetime. Operating and maintenance expenses for the tertiary treatment system are projected to be $2.2 million per year. If the citys MARR is 6% per year, what is the annual worth of the system? Express your answer in terms of dollars with negative values indicating costs, rounded to the nearest dollar (e.g., 1234 if you believe the answer to be $1,234.12).
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