contestada

The cost of energy for operating high-lift pumps in a water distribution system was $1.4 million for the first three years. Beginning in year four, the cost increased by $30,000 each year for the next 12 years. What is the present worth in year 0 of these energy costs at an interest rate of 6% per year

Respuesta :

Answer:

$14,371,240

Explanation:

The present worth in year 0 of these energy costs at an interest rate of 6% per year will be the net present value when the yearly amounts are discounted at 6%.

Amounts for years 1-3 is 1,400,000 while from years 4-12 is 1,430,000

See attached Calculations

The Net Present Value is $14,371,240

Ver imagen heavenandholiness

Otras preguntas