Problem 03.056 Shifted Decreasing Gradients The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 6 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 23 years, what is the present worth of the desalting option revenue at an interest rate of 5% per year? The present worth of the desalting option revenue at an interest rate of 5% per year is determined to be $ [

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Problem 03.056 Shifted Decreasing Gradients
The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One
brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 6 years,
after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 23
years, what is the present worth of the desalting option revenue at an interest rate of 5% per year?
The present worth of the desalting option revenue at an interest rate of 5% per year is determined to be $
Transcribed Image Text:Problem 03.056 Shifted Decreasing Gradients The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 6 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 23 years, what is the present worth of the desalting option revenue at an interest rate of 5% per year? The present worth of the desalting option revenue at an interest rate of 5% per year is determined to be $
Problem 03.047 Shifted Gradients
Calculate the present worth of all costs for a newly acquired machine with an initial cost of $36,000, no trade-in value, a
life of 12 years, and an annual operating cost of $16,000 for the first 4 years, increasing by 10% per year thereafter. Use an
interest rate of 10% per year.
The present worth of all costs for a newly acquired machine is determined to be $
Transcribed Image Text:Problem 03.047 Shifted Gradients Calculate the present worth of all costs for a newly acquired machine with an initial cost of $36,000, no trade-in value, a life of 12 years, and an annual operating cost of $16,000 for the first 4 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year. The present worth of all costs for a newly acquired machine is determined to be $
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