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 thatwill generate revenue of $4.1 million per year for the first 4.00 years, after which lessproduction will decrease revenue by 10% per year each year. If the aquifer will be totallydepleted in 20.00 years, what is the present worth of the desalting option revenue at aninterest rate of 9.00% per year? (Round the final answer to three decimal places.)The present worth of the desalting option revenue at an interest rate of 9.000% per year isdetermined to be $ 16668837

The problem involves the determination of the present worth or present value. Present value (PV) is…

Answered: The City of San Antonio is considering…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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