(Answered) Question the city of san antonio is considering various

Management Studies

Question: The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 6 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 25 years, what is the present worth of the desalting option revenue at an interest rate of 6% per year? The present worth of the desalting option revenue at an interest rate of 6% per year is determined to be $ .

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