Would you recommend that the pipeline be installed

Assignment Help Business Economics

Reference no: EM131806931

Fifteen families live in Willow Canyon. Although several water wells have been drilled, none has produced water. The residents take turns driving a water truck to a fire hydrant in a nearby town. They fill the truck with water and then haul it to a storage tank in Willow Canyon. Last year truck fuel and maintenance cost $3180. This year the residents are seriously considering spending $100,000 to install a pipeline from the nearby town to their storage tank. What rate of return would the Willow Canyon residents receive on their new water supply pipeline if the pipeline is considered to last

(a) Forever?

(b) 100 years?

(d) Would you recommend that the pipeline be installed? Explain.

Reference no: EM131806931

Questions Cloud

What is the rate of return for machine : The salvage value of the machine will be $20,000. What is the rate of return for this machine?

Subsequent payments will increase at a uniform : Subsequent payments will increase at a uniform 10% rate each year (second payment is $1210; third payment.

Prepare in good form a multiple-step income statement : Income taxes are calculated at 30 percent of income. Prepare in good form a multiple-step income statement for Mid City Galleries

How much must Helen set aside in savings account : Helen pays rent of $400 per month for the academic year (September through May). She is going to Australia for the summer and won't be working.

Would you recommend that the pipeline be installed : Fifteen families live in Willow Canyon. Although several water wells have been drilled, none has produced water. The residents take turns driving a water

Calculate the displacement from equilibrium : Solve the first order homogeneous differential equation - sinx using Leibnitz's theorem on repeated differentiation

Determine how much each class of stock should receive : Determine how much each class of stock should receive under each of the conditions stated.

What rate of return did he receive on his investment : He received no dividend for the ninth year. At the end of the ninth year he sold his stock for $6000. What rate of return did he receive on his investment?

What is the pw of the given cash flows : What is the PW of the following cash flows? $2800 for the first year and decreasing by $150 for each of the next eight years at 8%.

User Account

All Pages