What is the cost of one acre-foot of water to the irrigator

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In an irrigation district in the west, an irrigator can purchase an extra share (allotment) which entitles the holder to a 0.7 acre-foot of water per year in perpetuity. If the share costs $1600, what is the cost of one acre-foot of water to the irrigator? Assume an interest rate of 8%

Reference no: EM13146263

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