The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 4 years. An effective energy conservation program resulted in a reduced cost of $1.77 million in year 5, $1.74 million in year 6, and amounts decreasing by $30,000 each year through year 10. What is the present worth of the pumping costs in year 0 at an interest rate of 12% per year?

The pumping cost for delivering water from the
Ohio River to Wheeling Steel for cooling hot
rolled steel was $1.8 million for the first 4
years. An effective energy conservation program
resulted in a reduced cost of $1.77 million
in year 5, $1.74 million in year 6, and amounts
decreasing by $30,000 each year through year
10. What is the present worth of the pumping
costs in year 0 at an interest rate of 12% per
year?