Explain why the developer cant raise that sum

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You are the city engineer and are negotioating with a land developer. The developer wants water service to a new development and you report that service can be completed this year by city crews at a cost of $200,000 which will be billed to the land developer and payable bu the end of the year. The developer can't raise that sum now, so offers to pay the city $30,000 at the end of each of the next 10 years, which amounts to $100,000 above what the service costs. I money is worth 8%, should you accept this offer?

Reference no: EM13243857

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