3. It is proposed to place a cable on an existing pole line along the shore of a lake toconnect to points son opposite sides.Land RouteSubmarine RouteLength, milesFirst cost of cable per mileAnnual maintenance per mileInterest on investment10P40,000P68,0009503,50018%18%Тахes3%3%Net salvage value per mileLife, years12000220001515Which is more economical?Ans. The submarine cable is more economical; the rate of return on additionalinvestment is only 8.97%.

Land Route: First cost of cable is calculated as follows. Annual maintenance cost is calculated as…

3. It is proposed to place a cable on an existing pole line along the shore of a lake to connect to points son opposite sides. Land Route Submarine Route Length, miles First cost of cable per mile Annual maintenance per mile Interest on investment 10 5 P40,000 P68,000 950 3,500 18% 18% Тахes 3% 3% Net salvage value per mile Life, years 12000 22000 15 15 Which is more economical?

3. It is proposed to place a cable on an existing pole line along the shore of a lake to connect to points son opposite sides. Land Route Submarine Route Length, miles First cost of cable per mile Annual maintenance per mile Interest on investment 10 5 P40,000 P68,000 950 3,500 18% 18% Тахes 3% 3% Net salvage value per mile Life, years 12000 22000 15 15 Which is more economical?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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