7. A water treatment plant has a remaining service life of 15 years. It costs $675,000 per...
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7. A water treatment plant has a remaining service life of 15 years. It costs $675,000 per year to operate and maintain the facility. The O&M costs are expected to stay constant for the first three years and then begin to increase by 0.5% a year for the next 12 years. What is the present worth of the facility if the nominal interest rate is 6%? (Hint: Draw the cash flow diagram for clarity)
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
Posted Date: