Income from an investment in renewable energy sources

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Reference no: EM131002519

The Pedernales Electric Cooperative estimates that the present worth now of income from an investment in renewable energy sources is $12,475,000. There will be no income in years 1 and 2, but in year 3 incomes will be $250,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient, if the interest rate is 15% per year?

Reference no: EM131002519

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