Problem

A newly hirerd city engineer discovers that a trust fund exists to maintain and rehabilita...

A newly hirerd city engineer discovers that a trust fund exists to maintain and rehabilitate the local wastewater treatment plant in perpetuity. There is $5,500.000 in the fund. and annual maintenance costs are $300.000. The plant has just been rehabilitated. but no one is sure yet what the final cost was. If the plant is to he rehabilitated every 20 years, what amount can he spent for each rehab in the future? Interest rate is 6% compounded annually. Show the cash now diagram.

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