Question: Use Excel to solve Two possible routes for a power line are under study, one that goes under a lake and another that goes around.

Use Excel to solve Two possible routes for a power line

Use Excel to solve

Two possible routes for a power line are under study, one that goes under a lake and another that goes around. 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 line loss of $500/km. Assume the interest rate is 9%, conduct EAC analysis, and fill out the blanks. Alternative Under Around Length (km) 6 16 Initial Cost (per km) $24,000 $8,800 Maintenance (per km/year $325 $175 1. EUAC (Under) (round to nearest $100, numbers only) 2. EUAC (Around) (round to nearest $100, numbers only) $[PWB] 3. Which alternative do you recommend? (Under/Around)[AB] $[PWA]

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