Two possible routes for a power line are under study. In both
cases, the power line will last 15 years, have no salvage value,
have annual property taxes of 2% of first cost, and have a yearly
power loss of $500/km.
Around the lake
Under the lake
Length
16 km
6 km
First cost
$8800/km
$24,000 /km
Maintenance
$175/km/yr
$325 /km/yr
If 9% interest is used, FIND
1. EUAC (Under) (round to nearest $100)
2. EUAC (Around) (round to nearest
$100)
3....