El paso water utilities epwu purchases surface water for, Ask an Expert

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El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in future price increases in the cost of the water from 8% per year to 4% per year for the next 20 years. If the cost of water next year (which is year 1 of the new contract) will be $260 per acre-foot, what is the present worth of the savings (in $/acre-ft) to the utility between the old and the new contracts? Let the interest rate equal 6% per year.

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Computer Engineering, Engineering

Category:- Computer Engineering
Reference No.:- M91768161

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