A regional municipality is studying a water supply plan for its tri-city and surrounding area to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year 2080. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distance away. Construction would start at the beginning of 2030 and take five years at a cost of $20 million per year. The cost of maintenance and repairs starts after completion of construction and for the first year is $2 million, increasing by 1 percent per year thereafter. At an interest rate of 8 percent, what is the present worth of this project? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginning of 2026. Assume there is no salvage value at the end of year 2080. Click the icon to view the table of compound interest factors for discrete compounding periods when i = 8%. The present worth of this project is $ million. (Round to two decimal places as needed.) i = 8% Discrete Compounding, Discrete Cash Flows Single Payment Uniform Series Arithmetic Compound Present Sinking Uniform Capital Series Gradient Amount Worth Fund Series Recovery Present Series Factor Factor Factor Factor Factor Worth Factor Factor N (F/P,i,N) (P/F,I,N) (A/F,I,N) (F/A,I,N) (A/P,I,N) (P/A,i,N) (A/G,I,N) 1 1.0800 0.92593 1.0000 1.0000 1.0800 0.92593 0.00000 10 2345 67890 1.1664 0.85734 0.48077 2.0800 0.56077 1.7833 0.48077 1.2597 0.79383 0.30803 3.2464 0.38803 2.5771 0.94874 1.3605 0.73503 0.22192 4.5061 0.30192 3.3121 1.4040 1.4693 0.68058 0.17046 5.8666 0.25046 3.9927 1.8465 1.5869 0.63017 0.13632 7.3359 0.21632 4.6229 2.2763 1.7138 0.58349 0.11207 8.9228 0.19207 5.2064 2.6937 1.8509 0.54027 0.09401 10.637 0.17401 5.7466 3.0985 1.9990 0.50025 0.08008 12.488 0.16008 6.2469 3.4910 2.1589 0.46319 0.06903 14.487 0.14903 6.7101 3.8713 100 1234567822 22222 22222 353 3485 8ORK 22858 11 2.3316 0.42888 0.06008 16.645 0.14008 7.1390 4.2395 2.5182 0.39711 0.05270 18.977 0.13270 7.5361 4.5957 2.7196 0.36770 0.04652 21.495 0.12652 7.9038 4.9402 2.9372 0.34046 0.04130 24.215 0.12130 8.2442 5.2731 3.1722 0.31524 0.03683 27.152 0.11683 8.5595 5.5945 3.4259 0.29189 0.03298 30.324 0.11298 8.8514 5.9046 3.7000 0.27027 0.02963 33.750 0.10963 9.1216 6.2037 3.9960 0.25025 0.02670 37.450 0.10670 9.3719 6.4920 19 4.3157 0.23171 0.02413 41.446 0.10413 9.6036 6.7697 20 4.6610 0.21455 0.02185 45.762 0.10185 9.8181 7.0369 21 5.0338 0.19866 0.01983 50.423 0.09983 10.017 7.2940 5.4365 0.18394 0.01803 55.457 0.09803 10.201 7.5412 23 5.8715 0.17032 0.01642 60.893 0.09642 10.371 7.7786 24 6.3412 0.15770 0.01498 66.765 0.09498 10.529 8.0066 25 6.8485 0.14602 0.01368 73.106 0.09368 10.675 8.2254 26 7.3964 0.13520 0.01251 79.954 0.09251 10.810 8.4352 27 7.9881 0.12519 0.01145 87.351 0.09145 10.935 8.6363 28 8.6271 0.11591 0.01049 95.339 0.09049 11.051 8.8289 29 9.3173 0.10733 0.00962 103.97 0.08962 11.158 9.0133 30 10.063 0.09938 0.00883 113.28 0.08883 11.258 9.1897 31 10.868 0.09202 0.00811 123.35 0.08811 11.350 9.3584 32 11.737 0.08520 0.00745 134.21 0.08745 11.435 9.5197 12.676 0.07889 0.00685 145.95 0.08685 11.514 9.6737 34 13.690 0.07305 0.00630 158.63 0.08630 11.587 9.8208 14.785 0.06763 0.00580 172.32 0.08580 11.655 9.9611 40 21.725 0.04603 0.00386 259.06 0.08386 11.925 10.570 31.920 0.03133 0.00259 386.51 0.08259 12.108 11.045 50 46.902 0.02132 0.00174 573.77 0.08174 12.233 11.411 55 68.914 0.01451 0.00118 848.92 0.08118 12.319 11.690 60 101.26 0.00988 0.00080 1253.2 0.08080 12.377 11.902 65 148.78 0.00672 0.00054 1847.2 0.08054 12.416 12.060 70 218.61 0.00457 0.00037 2720.1 0.08037 12.443 12.178 75 321.20 0.00311 0.00025 4002.6 0.08025 12.461 12.266 80 471.95 0.00212 0.00017 5886.9 0.08017 12.474 12.330 693.46 0.00144 0.00012 8655.7 0.08012 12.482 12.377 90 1018.9 0.00098 0.00008 12724.0 0.08008 12.488 12.412 95 1497.1 0.00067 0.00005 18702.0 0.08005 12.492 12.437 2199.8 0.00045 0.00004 27485.0 0.08004 12.494 12.455 A regional municipality is studying a water supply plan for its tri-city and surrounding area to the end of year 2080. To satisfy the water demand, one suggestion is to construct a pipeline from a major lake some distance away. Construction would start at the beginning of 2030 and take five years at a cost of $20 million per year. The cost of maintenance and repairs starts after completion of construction and for the first year is $2 million, increasing by 1 percent per year thereafter. At an interest rate of 8 percent, what is the present worth of this project? Assume all cash flows take place at year-end. Consider the present to be the end of 2025/beginning of 2026. Assume there is no salvage value at the end of year 2080. Click the icon to view the table of compound interest factors for discrete compounding periods when i = 8%. The present worth of this project is $ million. (Round to two decimal places as needed.) i = 8% Discrete Compounding, Discrete Cash Flows Single Payment Uniform Series Arithmetic Compound Present Sinking Uniform Capital Series Gradient Amount Worth Fund Series Recovery Present Series Factor Factor Factor Factor Factor Worth Factor Factor N (F/P,i,N) (P/F,I,N) (A/F,I,N) (F/A,I,N) (A/P,I,N) (P/A,i,N) (A/G,I,N) 1 1.0800 0.92593 1.0000 1.0000 1.0800 0.92593 0.00000 10 2345 67890 1.1664 0.85734 0.48077 2.0800 0.56077 1.7833 0.48077 1.2597 0.79383 0.30803 3.2464 0.38803 2.5771 0.94874 1.3605 0.73503 0.22192 4.5061 0.30192 3.3121 1.4040 1.4693 0.68058 0.17046 5.8666 0.25046 3.9927 1.8465 1.5869 0.63017 0.13632 7.3359 0.21632 4.6229 2.2763 1.7138 0.58349 0.11207 8.9228 0.19207 5.2064 2.6937 1.8509 0.54027 0.09401 10.637 0.17401 5.7466 3.0985 1.9990 0.50025 0.08008 12.488 0.16008 6.2469 3.4910 2.1589 0.46319 0.06903 14.487 0.14903 6.7101 3.8713 100 1234567822 22222 22222 353 3485 8ORK 22858 11 2.3316 0.42888 0.06008 16.645 0.14008 7.1390 4.2395 2.5182 0.39711 0.05270 18.977 0.13270 7.5361 4.5957 2.7196 0.36770 0.04652 21.495 0.12652 7.9038 4.9402 2.9372 0.34046 0.04130 24.215 0.12130 8.2442 5.2731 3.1722 0.31524 0.03683 27.152 0.11683 8.5595 5.5945 3.4259 0.29189 0.03298 30.324 0.11298 8.8514 5.9046 3.7000 0.27027 0.02963 33.750 0.10963 9.1216 6.2037 3.9960 0.25025 0.02670 37.450 0.10670 9.3719 6.4920 19 4.3157 0.23171 0.02413 41.446 0.10413 9.6036 6.7697 20 4.6610 0.21455 0.02185 45.762 0.10185 9.8181 7.0369 21 5.0338 0.19866 0.01983 50.423 0.09983 10.017 7.2940 5.4365 0.18394 0.01803 55.457 0.09803 10.201 7.5412 23 5.8715 0.17032 0.01642 60.893 0.09642 10.371 7.7786 24 6.3412 0.15770 0.01498 66.765 0.09498 10.529 8.0066 25 6.8485 0.14602 0.01368 73.106 0.09368 10.675 8.2254 26 7.3964 0.13520 0.01251 79.954 0.09251 10.810 8.4352 27 7.9881 0.12519 0.01145 87.351 0.09145 10.935 8.6363 28 8.6271 0.11591 0.01049 95.339 0.09049 11.051 8.8289 29 9.3173 0.10733 0.00962 103.97 0.08962 11.158 9.0133 30 10.063 0.09938 0.00883 113.28 0.08883 11.258 9.1897 31 10.868 0.09202 0.00811 123.35 0.08811 11.350 9.3584 32 11.737 0.08520 0.00745 134.21 0.08745 11.435 9.5197 12.676 0.07889 0.00685 145.95 0.08685 11.514 9.6737 34 13.690 0.07305 0.00630 158.63 0.08630 11.587 9.8208 14.785 0.06763 0.00580 172.32 0.08580 11.655 9.9611 40 21.725 0.04603 0.00386 259.06 0.08386 11.925 10.570 31.920 0.03133 0.00259 386.51 0.08259 12.108 11.045 50 46.902 0.02132 0.00174 573.77 0.08174 12.233 11.411 55 68.914 0.01451 0.00118 848.92 0.08118 12.319 11.690 60 101.26 0.00988 0.00080 1253.2 0.08080 12.377 11.902 65 148.78 0.00672 0.00054 1847.2 0.08054 12.416 12.060 70 218.61 0.00457 0.00037 2720.1 0.08037 12.443 12.178 75 321.20 0.00311 0.00025 4002.6 0.08025 12.461 12.266 80 471.95 0.00212 0.00017 5886.9 0.08017 12.474 12.330 693.46 0.00144 0.00012 8655.7 0.08012 12.482 12.377 90 1018.9 0.00098 0.00008 12724.0 0.08008 12.488 12.412 95 1497.1 0.00067 0.00005 18702.0 0.08005 12.492 12.437 2199.8 0.00045 0.00004 27485.0 0.08004 12.494 12.455
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided Construction costs 20 million per year for 5 years ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these economics questions
-
Jereld Kim founded Kimco LTD, a firm that is currently one of the largest producers of paper and pulp with annual sales of AUD 800 Million. Kim located his first plant in a rural town in Tasmania,...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Consider : You have been asked to evaluate whether your organization's current pay structure makes sense in view of what competing - address the following: How would you determine what organizations...
-
Determine the reactions at the beam supports for the given loading. 200 lht Parabolas 100 lbft 12 ft
-
You have been given the following information on a project: It has a five-year lifetime The initial investment in the project will be $25 million, and the investment will be depreciated straight...
-
At graduation, you toss your mortarboard cap straight up at some initial speed \(v\). How fast is it moving when it comes back down to your hands if you \((a)\) ignore air resistance and \((b)\)...
-
Genix, Inc., has contracted to sell Larson five hundred washing machines of a certain model at list price. Genix is to ship the goods on or before December 1. Genix produces one thousand washing...
-
a) (5p) Suppose, you are given a relation R=(X, Y, Z, W, Q) with the following functional dependencies: {YZ-XWQ, WY, Z-Q) Find the best normal form that R satisfies (1NF, 2NF, 3NF, or BCNF). Explain...
-
Select all that apply Actual output is used for variance calculations because Blank______. Multiple select question. budgeted output although useful for planning is outdated for analyzing performance...
-
Brian arranges a mortgage for $170 000.00. He plans to repay the mortgage in equal monthly payments over 16 years at 3.2% per year compounded semi-annually. a) Determine Brian's monthly payment. b)...
-
What are the meanings of those words in the pictures? What is the quality answer that you can answer that I can easily understand? It's better if I explain all that in Tagalog so that I can fully...
-
You have just purchased a home and taken out a $510,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR (with semi-annual compounding) of 5.28%. (Note: Be careful not to...
-
a) You have written a call option on 1 share of A Street stock that is worth $15. You expect the price of the stock to either move to $20 or $10 over the next year. How many shares of A Street stock...
-
Measure GDP and NDP from the following data: Consumption Expenditure$28,500 Government Expenditure$ 18,900 Investment Expenditure$16,800 Exports$9.640 Imports$8,750 Depreciations$1,340 Retained...
-
6. You just graduated with your LSUS MHA. Healthcare professionals are eager to hire you. You have two competing job offers. Job #1 offers $50,000 a year with a guarantee raise of 2% a year. Job #2...
-
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions): Information Provided by Pension Plan Actuary:...
-
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
-
Allocating resources in the most efficient manner maximizes the wealth of any country. It is generally acknowledged that financial information plays an important role in efficient resource...
-
The quarterly cash flows from operations for two software companies are Required: 1. Explain why Firm B has more credit risk than Firm A. 2. Suppose that Firm Bs cash flow was $200 higher each...
-
KEW Corp. has 500,000 shares of common stock outstanding. In 2014, KEW reports income from continuing operations before taxes of $4,350,000. Additional transactions from 2014and not considered in the...
-
Why is it important to synchronize data and process models?
-
Create the use-case descriptions and diagram(s) for the system in problems 1 and 2. Be sure to create your use cases so that they are complete and clear. Remember, in real life, the system...
-
Conduct a technical feasibility study. What would you recommend the company use in the creation and maintenance of their site (e.g. languages, speciific host, encryption)? Why does your choice affect...
Study smarter with the SolutionInn App