An electric cooperative is considering the use of a concrete electric pole in the expansion of its power distribution lines. A concrete pole costs P18,000 each and will last 20 years. The company is presently using creosoted wooden poles which cost P12,000 per pole and will last 10 years. If money is worth 12%, which pole should be used? Assume annual taxes amount to 1% of first cost and zero salvage value in both cases.

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