A high-quality filter for tap water and a reusable drinking container cost $75 and typically will last for three years. If a family drinks an average of eight cups of water per day (one cup is 8 fluid ounces), the consumption of water is 547.5 gallons over a three-year period. Tap water costs $0.01 per gallon. Alternatively, bottled water may be purchased in 16-ounce bottles for $1.29 each. Compare the present worth of tap filtered water versus bottled water if the family can earn 10% per year on their investments. Assume uniform water consumption over the three-year study period.
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