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Business, 05.11.2019 23:31 hemolelekeakua

The city of carlsbad in california is considering building a​ $300 million​ water-desalination plant. the facility would be the largest in the western​ hemisphere, producing 50 million gallons of drinking water a day dash enough to supply about​ 100,000 homes. this​ plant, which uses improved membranes and pumping system to bring down the energy cost to​ $1.10 in electricity to produce​ 1,000 gallons of water. suppose the desalination plant is fully operational and you expect to operate it continuously for 20​ years, with an estimated salvage value of​ $20 million. the operating and maintenance costs​ (excluding the energy​ cost) amount to​ $15 million the first year and will increase at a rate of​ 3% each year. if the city plans to sell the water for about​ $950 per​ acre-foot (an​ acre-foot is​ 325,851 gallons dash enough water for four people per​ can it recover the capital cost and all other operating​ costs? assume the​ city's interest rate for this water project is known to be​ 6% compounded annually.

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The city of carlsbad in california is considering building a​ $300 million​ water-desalination p...
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