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 table:

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 S5000/km S25.000/km Maintenance cost S200/km/vr S400/km/vr Useful Life (vears) 15 20 Salvage Value S3000/km $5000/km Yearly power loss S500/km S500/km Annual Taxes 2% of the first cost 2% of the first cost If MARR = 10%, which alternative should you select? Justify your answer. (7 points)

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