El Paso Water is planning to install wind turbines to provide enhanced evaporation reverse osmosis concentrate from its inland desalting plant. The company will spend $1.5 million in year 1 and $2 million in year 2. Annual maintenance is expected to cost $65,000 per year through year 10. Determine the equivalent annual cost of the project in years 1 through 10 at an interest rate of 6% per year. Round your answer to the nearest dollar. Do not include the units.

El Paso Water is planning to install wind turbines to provide enhanced evaporation reverse osmosis concentrate from its inland desalting plant. The company will spend $1.5 million in year 1 and $2 million in year 2. Annual maintenance is expected to cost $65,000 per year through year 10. Determine the equivalent annual cost of the project in years 1 through 10 at an interest rate of 6% per year. Round your answer to the nearest dollar. Do not include the units.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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