A sewage treatment plant is being planned by a public authority. The design bein

Question

A sewage treatment plant is being planned by a public authority. The design being considered will have an initial cost of $2,100,000 with annual maintenance costs beginning at $100,000 and increasing by $5,000 every year. The plant is expected to undergo a major rehabilitation including various upgrades and renovations to the system at the end of the third year (EOY 3), and every 4 years subsequently. The first rehabilitation is expected to cost $200,000, increasing by 10% every four years subsequently. The design is expected to last for 50 years with no salvage value. The authority wants to recoup the facility charges from suburban households that use the system. What monthly user fees should be levied per household to recoup the capital, maintenance and rehabilitation costs of the facility. Assume the interest rate is 5%. The treatment facility is expected to serve 4,500 households over it's useful life.

Explanation / Answer

Ans: hints: The training of adequate manpower to operate the waste treatment facilities is crucial to ... of sewage treatment plant operators to lessen the FWPCA costs for this Item. ... Although most plans have been approved for FY 1968, It Is evident that a ... will review the extent to which Implementa- tion plans' are being carried out. 1)

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