Calculate the capital recovery for the project

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Reference no: EM132060990

Waller County is planning to construct a Dam some tens of miles away from the Hempstead Recreation center to facilitate fishing in the El Manny River Basin and Power Generation. The first cost of the Dam will amount to $6,500,00. Annual maintenance and repairs will amount to $24,000 for the first four years, $28,000 for each year in the next eight years and to $32,000 per year for the next four year. At the end of the 16th year, $25,000 is estimated to be deposited into Waller county account as tax credits earned for its enviornmental compliance in the construction and operation of the Dam. In addition to a major overhaul costing $650,000 will be requred at the end of the seventh year. Use an interest rate of 10% to find:

a) Determine the engineering economy symbols and their value for each option

b) Construct the cash flow diagram

c) Calculate the Capital Recovery for the project

d) Determine the total Annual Worth of the Project

e) What is the Present Worth of this project

Reference no: EM132060990

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