City engineers are considering several plans for building municipal aqueduct tunnels. They use an interest rate of 8%. One plan calls for a full-capacity tunnel that will meet the needs of the city forever. The cost is 3 million now for construction and $0.1 million every 10 years thereafter for repairs. What is the total present worth of the costs of building and maintaining the aqueduct?

Answer rating: 100% (QA)

The question is solved by calculating net present value of the project Net Present Value The net cas... View the full answer