Standby power for water treatment facilities is provided by diesel-powered generators. As an alternative, they can use natural gas to power the generators, but it will be a few years before the gas is available at remote sites. They estimate that by switching to gas, it will save Php 22 000 per year, 3 years from now. At an interest rate of 8 % per year, determine the present worth in year 0 of the projected savings that will occur in years 3 to 10 A. Php 98 433.69 B. Php 108 389.96 C. Php 84 761.18 D. Php 115 285.16
Standby power for water treatment facilities is provided by diesel-powered generators. As an alternative, they can use natural gas to power the generators, but it will be a few years before the gas is available at remote sites. They estimate that by switching to gas, it will save Php 22 000 per year, 3 years from now. At an interest rate of 8 % per year, determine the present worth in year 0 of the projected savings that will occur in years 3 to 10 A. Php 98 433.69 B. Php 108 389.96 C. Php 84 761.18 D. Php 115 285.16
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Standby power for water treatment facilities is provided by diesel-powered generators. As an alternative, they can use natural gas to power the generators, but it will be a few years before the gas is available at remote sites. They estimate that by switching to gas, it will save Php 22 000 per year, 3 years from now. At an interest rate of 8 % per year, determine the present worth in year 0 of the projected savings that will occur in years 3 to 10
A. Php 98 433.69
B. Php 108 389.96
C. Php 84 761.18
D. Php 115 285.16
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