Question: I posted this question 4 times all replied I got something missing in the question nobody explain to me clearly why can't solve the question.

 I posted this question 4 times all replied I got something

I posted this question 4 times all replied I got something missing in the question nobody explain to me clearly why can't solve the question.

The Muscat Electric Company ventures to a new project in the eastern part of the capital city which is a 200-kilometer, 300 kV transmission lines. The company has to choose between an Overhead Cable Transmission System and Underground Cable Transmission System. Table Q3 shows the initial investment for each type, the expected revenues during its lifetime which includes the cost savings incurred by underground transmission system over the overhead transmission system. The company has estimated a salvage value for each type of transmission to be 5% of the initial investment. As a company cost of capital is 8% per year. Using the following techniques for capital investment appraisal, perform the following; (i) Simple Payback Period; (ii) Average Rate of Return; (iii) Benefit Cost Ratio; (iv) Determine which of the alternative is acceptable to the company based on the above results. Table Q3: Revenue & Expenses in Million OMR Overhead Underground Items Cable Transmission System 9,434 Cable Transmission System Initial Investment (million OMR) 13,044 841 1489 Annual Revenue + cost savings (million OMR) Increases by 2% per year First 10 years: Increases by 2% per year First 10 years: 219 183 Annual Operating & Maintenance O&M Cost (million OMR) Succeeding years: 3% increase per year 10% of (Annual Revenue + cost savings) Succeeding years: 1.5% increase per year Annual taxes (million OMR) 10% of (Annual Revenue + cost savings) Life expectancy, years 50 40 The Muscat Electric Company ventures to a new project in the eastern part of the capital city which is a 200-kilometer, 300 kV transmission lines. The company has to choose between an Overhead Cable Transmission System and Underground Cable Transmission System. Table Q3 shows the initial investment for each type, the expected revenues during its lifetime which includes the cost savings incurred by underground transmission system over the overhead transmission system. The company has estimated a salvage value for each type of transmission to be 5% of the initial investment. As a company cost of capital is 8% per year. Using the following techniques for capital investment appraisal, perform the following; (i) Simple Payback Period; (ii) Average Rate of Return; (iii) Benefit Cost Ratio; (iv) Determine which of the alternative is acceptable to the company based on the above results. Table Q3: Revenue & Expenses in Million OMR Overhead Underground Items Cable Transmission System 9,434 Cable Transmission System Initial Investment (million OMR) 13,044 841 1489 Annual Revenue + cost savings (million OMR) Increases by 2% per year First 10 years: Increases by 2% per year First 10 years: 219 183 Annual Operating & Maintenance O&M Cost (million OMR) Succeeding years: 3% increase per year 10% of (Annual Revenue + cost savings) Succeeding years: 1.5% increase per year Annual taxes (million OMR) 10% of (Annual Revenue + cost savings) Life expectancy, years 50 40

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