Sales of bottled water in the U.S totaled 16.3 gallons per person in 2004. Water costs .40 cents per bottle.A municipal company provides tap water for $2.10 per 1000 gallons. If the average person drinks two bottles of water per day or uses 5 gallons per day in getting that amount of water from the tap.
what are the present worth values of drinking botled water or tap water per person for 1 year?
Use an interest rate of 6% per year compounded monthly and 30 days per month.