It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on the opposite sides. There are twoalternatives: Alternative A which takes the land route and Alternative B which takes the submarine route. The data on each alternative are as follows:Alternative AAlternative BLength, km2012First cost per kmP45,000P63,000Annual maintenance per kmP1,000P3,000Interest on investment15%15%Taxes5%5%Net salvage value per kmP10,000P22,000Life, years1515Based on the Present Worth Cost Method,a. what is the total annual costs (excluding depreciation) for Alternative A?b. what is the present worth of the costs for Alternative A?C. what is the total annual costs (excluding depreciation) for Alternative B?d. what is the present worth of the costs for Alternative B?

Given: Alternative A Alternative B Length per km 20 12 First Cost per km P 45000 P 63000…

It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on the opposite sides. There are two alternatives: Alternative A which takes the land route and Alternative B which takes the submarine route. The data on each alternative are as follows: Alternative A Alternative B Length, km 20 12 First cost per km P45,000 P63,000 Annual maintenance per km P1,000 Р3,000 Interest on investment 15% 15% Тахes 5% 59% Net salvage value per km P10,000 P22,000 Life, years 15 15 Based on the Present Worth Cost Method, a. what is the total annual costs (excluding depreciation) for Alternative A? b. what is the present worth of the costs for Alternative A? c. what is the total annual costs (excluding depreciation) for Alternative B? d. what is the present worth of the costs for Alternative B?

It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on the opposite sides. There are two alternatives: Alternative A which takes the land route and Alternative B which takes the submarine route. The data on each alternative are as follows: Alternative A Alternative B Length, km 20 12 First cost per km P45,000 P63,000 Annual maintenance per km P1,000 Р3,000 Interest on investment 15% 15% Тахes 5% 59% Net salvage value per km P10,000 P22,000 Life, years 15 15 Based on the Present Worth Cost Method, a. what is the total annual costs (excluding depreciation) for Alternative A? b. what is the present worth of the costs for Alternative A? c. what is the total annual costs (excluding depreciation) for Alternative B? d. what is the present worth of the costs for Alternative B?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please answer all with complete solution and draw the cash flow diagram,,, thank you....