What is the equivalent annual worth of the upgraded system

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A large water utility is planning to upgrade its SCADA system for controlling well pumps, booster pumps, and disinfection equipment, so that everything can be controlled from one site. The first phase will reduce labor and travel costs by $28000 per year. The second phase will reduce costs by an additional $20000 per year. If phase 1 savings occur in years 0, 1, 2, and 3 and phase 2 occurs in years 4 through 10, what is the equivalent annual worth of the upgraded system in years 1 through 10 at an interest rate of 8% per year?

Reference no: EM13218407

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