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 5 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 22 years, what is the present worth of the desalting option revenue at an interest rate of 8% per year? The present worth of the desalting option revenue at an interest rate of 8% per year is determined to be $
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 5 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 22 years, what is the present worth of the desalting option revenue at an interest rate of 8% per year? The present worth of the desalting option revenue at an interest rate of 8% per year is determined to be $
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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 5 years, after which less production will decrease revenue by 10% per year
each year. If the aquifer will be totally depleted in 22 years, what is the present worth of the desalting
option revenue at an interest rate of 8% per year?
The present worth of the desalting option revenue at an interest rate of 8% per year is determined to be $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F65a35f95-361c-4be8-9d60-ee51eb45a923%2Fd59d1b51-6d34-467f-9937-f5f350469c3f%2F6vdrcn_processed.png&w=3840&q=75)
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 5 years, after which less production will decrease revenue by 10% per year
each year. If the aquifer will be totally depleted in 22 years, what is the present worth of the desalting
option revenue at an interest rate of 8% per year?
The present worth of the desalting option revenue at an interest rate of 8% per year is determined to be $
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