The Public Service Board (PSB) awarded two contracts worth a combined $3.07 million to increase the depth of a retention basin and reconstruct a spillway that was severely damaged in a flood 2 years...

The Public Service Board (PSB) awarded two contracts

worth a combined $3.07 million to increase

the depth of a retention basin and reconstruct a

spillway that was severely damaged in a flood

2 years ago. The PSB president stated that, surprisingly,

the bids were $1,150,000 lower than PSB

engineers estimated. If the projects are assumed to

have a 20-year life, what is the annual worth of the

savings at an interest rate of 5% per year?