Would you recommend that the pipeline be installed

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Reference no: EM13742715

Fifteen families live in Willow Cannon. Although several water wells have been drilled, none has produced water. The residents take turns driving a water truck to a fill station in a nearby town. The water is hauled to a storage tank in Willow Cannon. Last year truck and water expenses totalled $6200. What rate of return would the Willow Cannon residents receive on a new water supply pipeline costing $100,000 that would replace the truck? The pipeline is considered to last

Forever

100 years

50 years

Would you recommend that the pipeline be installed? Explain

Reference no: EM13742715

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