The cost of energy for operation high lift pumps in a water distribution system was $1.4 million for the first three years. Beginning in year four, the cost increased by $30,000 each year for the next 12 years. The cost of the energy is at an interest rate of 6% per year.
a) Determine the engineering economy symbols and thier values for each option.
b) Construct the cash flow diagram
c) Calculate the equivalent value now