Problem
A water system Is to be bulld to serve a newly developed subdivision. This subdivision will use 300 00 000 liters of water per year. the facilitles to be installed cost P1 500 000 and it is estimated that the operations and maintenance of the system will cost P70 000 annually. Operating taxes wlll be P24 000 per year and income taxes will be 25% of the ?rst P100 000. 00 net revenue 35% of the net revenue over P100,000.00. The life of the water System properties is 80 years an; 5% sinking fund is to be established for deprecatlon. At what rate per Cu. meter must be the water he sold to return an annual net pro?t of 6% after Income taxes on the original investment?