8) A private water utility purchases 10,000,000 kilowatt-hours of electricity per year for pump operations. The unit cost of electricity is currently 10.0 cents per kilowatt-hour. Over the next 30 years, the utility's electrical energy consumption is expected to remain constant while the unit cost of electricity increases at an average rate of 3.0% per year. The utility's minimum attractive rate of return is 6.0%. Find the present value of the next 30 years of electricity purchases in million dollars. a) 1.0 c) 48.3 b) 13.8 d) 19.8
8) A private water utility purchases 10,000,000 kilowatt-hours of electricity per year for pump operations. The unit cost of electricity is currently 10.0 cents per kilowatt-hour. Over the next 30 years, the utility's electrical energy consumption is expected to remain constant while the unit cost of electricity increases at an average rate of 3.0% per year. The utility's minimum attractive rate of return is 6.0%. Find the present value of the next 30 years of electricity purchases in million dollars. a) 1.0 c) 48.3 b) 13.8 d) 19.8
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Answer Question 8: the marked choice is the correct answer.
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