The annual fuel costs required to operate a small solid-waste treatment plant are projected to be $2.2

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The annual fuel costs required to operate a small solid-waste treatment plant are projected to be $2.2 million without considering any future inflation. The best estimates indicate that the annual inflation-free interest rate (i') will be 6% and the general inflation rate () will be 5%. If the plant has a remaining useful life of five years, what is the present equivalent of its fuel costs? Use actual-dollar analysis.
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