The City of San Antonio is considering various options forproviding water in its 50-year plan, including desalting. Onebrackish aquifer is expected to yield desalted water that willgenerate revenue of $4.1 million per year for the first 5 years,after which less production will decrease revenue by 10% per yeareach year. If the aquifer will be totally depleted in 23 years,what is the present worth of the desalting option revenue at aninterest rate of 5% per year?
The present worth of the desalting option revenue at an interestrate of 5% per year is determined to be $
