A community near the ocean is suffering from drinking water scarcity due to climate change. The community
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A community near the ocean is suffering from drinking water scarcity due to climate change. The community plans to build a water desalination system to transform seawater into fresh water. Once its useful life is over, the system will be sold at salvage value. Considering the following conditions, what is the rate of return?
- Uniform annual benefit: $80,000 per year
- Initial cost: triangularly distributed with a min of $500,000, a mode of $700,000, and a max of $1,000,000
- Salvage value: normally distributed with a mean of $60,000 and a standard deviation of $9,000
- Useful life: uniformly distributed over 10 to 15 years
Related Book For
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave
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