Determine the equivalent present worth of the savings

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Reference no: EM131575748

The SEWA (Southwestern Electricity and Water Authority) authorized construction projects totaling $1.07 million to improve desalinization plant efficiency and salinity-reduction technology for reject chemicals. Three bids from potential vendors were received in the amounts of $1.06, $1.053, and $1.045 million. Assume the savings will be realized immediately for each bid, were it accepted. Use an expected life of 10 years and i = 6% per year to do the following for the savings anticipated from the lower-than authorized bids: the savings is the difference between the 1.07 million and the 3 bids

(a) Determine the equivalent present worth of the savings.

(b) Determine the equivalent annual worth of the savings.

Reference no: EM131575748

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