Question: Question 2 (7 points) Two possible routes for a power line are under study. Data on the routes are as shown in the + following

 Question 2 (7 points) Two possible routes for a power line

Question 2 (7 points) Two possible routes for a power line are under study. Data on the routes are as shown in the + following table Option Around the Lake Under the Lake Information Length 15 km 5 km First Cost $5000 km $25,000 km Maintenance cost $200 km/y: $400/km v Useful Life (years) 15 20 Salvage Value $3000/kom S5000 km Yearly power loss $500 kom S500 km Annual Taxes 29 of the first cost 29 of the first cost If MARR = 10%, which alternative should you select? Justify your answer. (points)

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