# Question

The operating cost for a proposed waste-water treatment plant is estimated as $500,000 per year, increasing by $100,000 each year after the first.

Assume i = 6 percent. Find the following:

a) Equivalent annual cost of all operating costs, for a life of 25 years.

b) Present worth of all operating costs, for a life of 25 years.

c) Equivalent annual cost of all operating costs, for a perpetual life.

d) Present worth of all operating costs, for a perpetual life.

Assume i = 6 percent. Find the following:

a) Equivalent annual cost of all operating costs, for a life of 25 years.

b) Present worth of all operating costs, for a life of 25 years.

c) Equivalent annual cost of all operating costs, for a perpetual life.

d) Present worth of all operating costs, for a perpetual life.

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