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Business, 07.06.2020 02:59 waldruphope3956

A rural utility company provides standby power to pumping stations using diesel-powered generators. An alternative has arisen whereby the utility could use a combination of wind and solar power to run its generators, but it will be a few years before the alternative energy systems are available. The utility estimates that the new systems will result in savings of $15,000 per year for 3 years, starting 2 years from now and $25,000 per year for 4 more years after that, i. e., through year 8. At an interest rate of 8% per year, determine the equivalent annual worth for years 1 through 8 of the projected savings. Solve using

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A rural utility company provides standby power to pumping stations using diesel-powered generators....
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