Bandwidth, Mbps First Cost, $ Operating Cost, $ per year Annual Income, $ per year 44 -40,000 -2000 +4000 55 -46,000 -1000 +5000 88 -61,000 -500 +8000

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
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A WiMAX wireless network integrated with a satellite network can provide connectivity to any location within 10 km of the base station. The number of sectors per base station can be varied to increase the bandwidth. An independent cable operator is considering the three bandwidth alternatives
shown below (monetary values in $1000 units). Assume a life of 20 years and a MARR of 25% per year to determine which alternative is best using an incremental ROR analysis.

Bandwidth,
Mbps
First
Cost, $
Operating
Cost,
$ per year
Annual
Income,
$ per year
44
-40,000
-2000
+4000
55
-46,000
-1000
+5000
88
-61,000
-500
+8000
Transcribed Image Text:Bandwidth, Mbps First Cost, $ Operating Cost, $ per year Annual Income, $ per year 44 -40,000 -2000 +4000 55 -46,000 -1000 +5000 88 -61,000 -500 +8000
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