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 10 5 P40,000 950 P68,000 3,500 Interest on investment 18% 18% Тахes 3% 3% Net salvage value per mile Life, years 12000 22000 15 15 Which is more economical?

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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
10
5
P40,000
P68,000
950
3,500
Interest on investment
18%
18%
Таxes
3%
3%
Net salvage value per mile
Life, years
12000
22000
15
15
Which is more economical?
Ans. The submarine cable is more economical; the rate of return on additional
investment is only 8.97%.
Transcribed Image Text: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 10 5 P40,000 P68,000 950 3,500 Interest on investment 18% 18% Таxes 3% 3% Net salvage value per mile Life, years 12000 22000 15 15 Which is more economical? Ans. The submarine cable is more economical; the rate of return on additional investment is only 8.97%.
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