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

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?

Around Under the Lake the Lake S km $25,000/km Length First cost 15 km $5000/km $200/kuvlyr $400/km/yr Maintenance Usefu

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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