A newly constructed water desalination plant costs $5.3 million, and has a capacity to supply 2,658 units of water a year. It is estimated that the plant will need revamping to maintain the original design specification every 15 years at a cost of $1.4 million. Annual repairs and maintenance costs are estimated to be $229,716. At an interest rate of 4%, how much will it cos to supply each unit of water, assuming that the plant will be used for an indefinite period. (provide your answer in the nearest dollars, i.e., no decimal places)

A newly constructed water desalination plant costs $5.3 million, and has a capacity to supply 2,658 units of water a year. It is estimated that the plant will need revamping to maintain the original design specification every 15 years at a cost of $1.4 million. Annual repairs and maintenance costs are estimated to be $229,716. At an interest rate of 4%, how much will it cos to supply each unit of water, assuming that the plant will be used for an indefinite period. (provide your answer in the nearest dollars, i.e., no decimal places)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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