Question: The operating cost for a proposed waste water treatment plant is

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.


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  • CreatedSeptember 19, 2013
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