How to calculate the present worth values

Assignment Help Macroeconomics

Reference no: EM13201150

Sales of bottled water in the U.S totaled 16.3 gallons per person in 2004. Water costs .40 cents per bottle.A municipal company provides tap water for $2.10 per 1000 gallons. If the average person drinks two bottles of water per day or uses 5 gallons per day in getting that amount of water from the tap.

what are the present worth values of drinking botled water or tap water per person for 1 year?

Use an interest rate of 6% per year compounded monthly and 30 days per month.

Reference no: EM13201150

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