Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
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
10
5
P40,000
P68,000
Annual maintenance per mile
950
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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