Question: Problem 125 points) Waller County is planning to construct a Dam some tens of miles away from the Hempstead Recreation center to facilitate fishing in
Problem 125 points) Waller County is planning to construct a Dam some tens of miles away from the Hempstead Recreation center to facilitate fishing in the El Manny River Basin and Power Generation. The first cost for the Dam will amount to S6,500,000. Annual maintenance and repairs will amount to $24,000 for the first four years, to $28,000 for each year in the next eight years, and to $32,000 per year for the next four years. At the end of the 16th year, $25,000 is estimated to be deposited into Wall er county account as tax credits earned for its environmental compliance in the construction and operation of the Dam. In addition a major overhaul costing $650,000 will be required at the end of the seventh year. Use an interest rate of 10% and a) D b) Construct the cash flow diagram c) Calculate the Capital Recovery for the project d) Determine the total Annual Worth for the Project e) What is the Present worth of this project etermine the engineering economy symbols and their value for each option
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
