An electric cooperative is considering the use of a conicrete electric pole in the expansion of its power distribution lines A concrete pole costs 18.0o0 each and will last 20 years The company is presently using creosoted wooden poles which cost 12.000 per pole and will last 10 years. If money is worth 12 percent, which pole shoulcd be used? Assurne annual taxes amount to1 percerit of first cost and zero salvage value in both cases a) Use rate of return method b) if the maximum retum on investment is 20% what is the justifiable arnount that can be paid for concrete electric pole?

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A: In the annual worth analysis, we find equivalent annual values of all the cash flows.

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A:

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A: Discounting approach

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A: One of the approaches for determining the value of a project is to use the yearly worth method.

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A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…