The City of San Antonio is considering various options for providing water in its 50year plan,...

The City of San Antonio is considering various options for providing water in its 50year 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 4 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 8% per year?

Solutions

Expert Solution

Therefore the Present Worth = $28,176,187

If there is any doubt please ask in comments

Rahul Sunny answered 1 month ago

Next > < Previous

Related Solutions

A city is considering a reservoir water as its new drinking water source. As a result,...

A city is considering a reservoir water as its new drinking water source. As a result, the city council wants to know how good the reservoir water is to serve this potential purpose. Assume you are the chief engineer of the city utilities; please provide a list of water quality parameters need to be tested and the corresponding testing methods.

Weighted-average method. Larsen Company manufactures car seats in its San Antonio plant.

Weighted-average method. Larsen Company manufactures car seats in its San Antonio plant. Each car seat passes through the Assembly Department and the Testing Department This problem focuses on the Assembly Department. The process-costing system at Larsen Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the Assembly Department finishes work on each car seat it...

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand...

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $1,100,000. San Antonio paid $350,000 and signed a noninterest-bearing note requiring the company to pay the remaining $750,000 on March 28, 2020. An interest rate of 8% properly reflects the time value of...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased by paying $390,000 immediately and signing a noninterest-bearing note requiring the company to pay $790,000 on March 28, 2023. An interest rate of 8% properly reflects the time value of money for this type...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased by paying $300,000 immediately and signing a noninterest-bearing note requiring the company to pay $700,000 on March 28, 2023. An interest rate of 8% properly reflects the time value of money for this type...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased by paying $200,000 immediately and signing a noninterest-bearing note requiring the company to pay $600,000 on March 28, 2023. An interest rate of 8% properly reflects the time value of money for this type...

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand...

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $1,080,000. San Antonio paid $340,000 and signed a noninterest-bearing note requiring the company to pay the remaining $740,000 on March 28, 2020. An interest rate of 6% properly reflects the time value of...

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand...

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on January 1 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $880,000. San Antonio paid $240,000 and signed a noninterest bearing note requiring the company to pay the remaining $640,000 on January 1, 2020. An interest rate of 10% properly reflects the time value...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased by paying $380,000 immediately and signing a noninterest-bearing note requiring the company to pay $780,000 on March 28, 2023. An interest rate of 8% properly reflects the time value of money for this type...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand...

Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased by paying $320,000 immediately and signing a noninterest-bearing note requiring the company to pay $720,000 on March 28, 2023. An interest rate of 8% properly reflects the time value of money for this type...

Subjects