Urban infrastructures that support a community are sometimes in the news; we seldom think about them except
Question:
Urban infrastructures that support a community are sometimes in the news; we seldom think about them except when there is a disruption of service. A small city has just replaced a water storage tank and associated feeders from it throughout the community. It is estimated that the annual service requirements will be $40,000 the first year. with $10,000 increases in each subsequent year for 8 years. The community's time value of money is 4%.
Determine the present worth of these maintenance expenses using each of two different methods. This will serve as a chock on your work. Carry all interim calculations to 5 decimal places and then round your final answers to a whole number.
Determine the future worth of these maintenance expenses at the end of year 8. Carry all interim calculations to 5 decimal places and then round your final answers to a whole number.