Engineering Economics

8. Corrosion problems -and manufacturing defects rendered a gasoline pipeline between El Paso and Phoenix subject to longitudinal weld seam failures. Therefore, the pressure was reduced to 80% of the de sign value. If the reduced pressure results in delivery of $100,000 per month less product, what will be the value of the lost revenue after a 3-year period at an interest rate of 1 1 .940397% per year, compounded continuously