Question: The Public Service Board (PSB) awarded two contracts worth a combined $1.07 million to improve (i.e., deepen) a retention basin and reconstruct the spillway that

The Public Service Board (PSB) awarded two contracts worth a combined $1.07 million to improve (i.e., deepen) a retention basin and reconstruct the spillway that was severely damaged in a flood 2 years ago. The PSB said that, because of the weak economy, the bids came in $950,000 lower than engineers expected. If the projects are assumed to have a 20-year life, what is the annual worth of the savings at an interest rate of 6% per year?

Step by Step Solution

★★★★★

3.33 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

P is present worth of equivalent uniform series of savings A which begin... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

217-B-E-M (915).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

The Public Service Board (PSB) awarded two contracts worth a combined $3.07 million to increase the depth of a retention basin and reconstruct a spillway that was severely damaged in a flood 2 years...

A company borrows $35 million for one year at an interest rate of 6-month LIBOR plus 1.5% in July. The interest has to be paid at intervals of six months. The company would like to hedge the interest...

A bank offers a $25,000 loan at an interest rate of 7.7% that can be paid back over 2 to 10 years. a. Write the monthly payment formula for this loan situation. Let t represent the number of years...

CAPITALRECOVERY Capital recovery (CR) is the equivalent annual amount that the asset, process, or system must earn (new revenue) each year to just recover the initial investment plus a stated rate of...

Please help determine the annual worth analysis ANNUAL WORTH ANALYSIS Annual Worth (AW) value is the equivalent uniform annual worth of all estimated receipts and disbursements during the life cycle...

2.21 The Public Service Board (PSB) awarded two contracts worth a combined $3.07 million to increase the depth of a retention basin and reconstruct a spillway that was severely damaged in a flood 2...

Valparaiso Public Work ( VPW ) Board awarded two contracts worth a combined $ 4 . 5 million to increase the depth of a retention basin and reconstruct a spillway that was severely damaged in a flood...

I only need for the economics and financial performance part to be done as per the table in the assignment question attachment. 600-800 words. I have completed the rest of the assignment already. The...

What strategic issues confront Vail Resort in 2017? What market or internal circumstances should most concern CEO Rob Katz and his companys senior leadership team? WHISTLER BLACKCOMB AFTON ALPS...

ACCT2060- Accounting for Organisations and Society Marking Rubric for Individual assignment Semester 1 2016 High distinction 10 Distinction 7.5 Credit 6.5 Pass 5 Below standards 2.5 Title page, and...

Recall from Section 9-7 how acetylide ions are alkylated by displacing unhindered alkyl halides. Like acetylide ions, Grignard and organolithium reagents are strong bases and strong nucleophiles....

Find the arc length of the function 1 f(x) = -- on [0, 1]. 3 Write your answer as an integer or reduced fraction. If your answer involves a square root, then put sqrt followed by parentheses around...

20. LO.5 Kathy owns and operates a grocery store as a sole proprietor. She pays wages to her husband Joe and their 17-year-old daughter Marla, both of whom work at the store. Should Kathy withhold...

What are the benefits of establishing a business in Hong Kong and not in Mainland China? What is the strategic value of placing your business in Hong Kong?

An expenditure of $20,000 is made to modify a material-handling system in a small job shop. This modification will result in first-year savings of $2,000, a second-year savings of $4,000, and a...

Determine the value of P0, as a function of H, for these two investment alternatives to be equivalent at an interest rate of i = 15% per year: 1.7H 2Po 05 1015 5 10 10 End of Year Po End of Year

Suppose that annual income from a rental property is expected to start at $1,300 per year and decrease at a uniform amount of $50 each year after the first year for the 15-year expected life of the...

I WILL GIVE DISLIKES ! ! ! IF ANYTHING WRONG HAPPENS IN MY QUESTION, BETTER SKIP IT ! ! ! " No doneu la soluci i l'explicaci . 2 No resolgueu sin et castigar . Detecta perills en el programa seg ent...

Check my work If you invest $9,900 per period for the following number of periods, how much would you have in each of the following instances? a. In 8 years at 9 percent? (Do not round intermediate...

A reputable research firm recently asked 2126 adults and 1036 high-ranking college administrators in a certain country whether they would "rate the job the higher education system is doing in...