Question: A new engineer is evaluating whether to use a higher-voltage transmission line. It will cost $250,000 more initially, but it will reduce transmission losses.

A new engineer is evaluating whether to use a higher-voltage transmission line. It will cost $250,000 more initially, but it will reduce transmission losses. The optimistic, most likely, and pessimistic projections for annual savings are $25,000, $20,000, and $13,000, respectively. The interest rate is 6%, and the transmission line should have a life of 30 years. Use the range of estimates to compute the mean annual savings (Round your answer to the nearest dollar)

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