Question: Two possible routes for a power line are under study. In both cases, the power line will last 15 years, have no salvage value, have

Two possible routes for a power line are under study. In both cases, the power line will last 15 years, have no salvage value, have annual property taxes of 2% of first cost, and have a yearly power loss of $500/km.

Around the lake Under the lake
Length 16 km 6 km
First cost $8800/km $24,000 /km
Maintenance $175/km/yr $325 /km/yr

If 9% interest is used, FIND

1. EUAC (Under) (round to nearest $100)

2. EUAC (Around) (round to nearest $100)

3. Which alternative do you recommend? (Under/Around)

PLEASE USE EXCEL TO SOLVE AND PLS SHOW EXCEL FORMULAS

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