Two possible routes for a power line are under study. Data on the routes are as follows:
Question:
Two possible routes for a power line are under study. Data on the routes are as follows:
If 7% interest is used, should the power line be routed around the lake or under the lake?
Transcribed Image Text:
Around Under the Lake the Lake S km $25,000/km Length First cost 15 km $5000/km $200/kuvlyr $400/km/yr Maintenance Useful life, in years Salvage value Yearly power loss Annual property taxes 15 15 $3CCOkm SS000/km $500/km SSOOkm 2% of first cost 2% of first cost
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Around the Lake Under the Lake First Cost 75000 125000 Maintenance 3000yr 2000yr Ann...View the full answer
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