A new engineer is evaluating whether to use a higher-voltage transmission line. It will cost $250,000...

Transcribed Image Text:

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. Calculate the present worth of the mean annual savings (Round your answer to the nearest dollar.) 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. Calculate the present worth of the mean annual savings (Round your answer to the nearest dollar.)