The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 3 years.
An effective energy conservation program resulted in a reduced cost to $1.77 million in year 4, $1.74 million in year 5, and amounts decreasing by $30,000 each year through year 9. What is the equivalent annual worth of the pumping costs over the 9 years at an interest rate of 12% per year?