A water resources project has benefits that equal $50,000 at the end of the first year and increase on a uniform gradient series to $250,000 at the end of the fifth year. The benefits remain constant at $250,000 each year until the end of year 30, after which they decrease to $0 on a uniform gradient at the end of year 40. What is the present value of these benefits using a 5% interest rate?

A water resources project has benefits that equal $50,000 at the end of the first year and increase on a uniform gradient series to $250,000 at the end of the fifth year. The benefits remain constant at $250,000 each year until the end of year 30, after which they decrease to $0 on a uniform gradient at the end of year 40. What is the present value of these benefits using a 5% interest rate?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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