It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on opposite sides. Land Route Submarine Route Length, miles First cost of cable per mile Annual maintenance per mile Interest on Investment 10 P40,000 P68,000 950 3,500 18% 18% Тахes 3% 3% Net salvage value per mile Life, years 12,000 22,000 15 15 Which is more economical? Use ROR, Future, Present and Annual Worth Method

It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on opposite sides. Land Route Submarine Route Length, miles First cost of cable per mile Annual maintenance per mile Interest on Investment 10 P40,000 P68,000 950 3,500 18% 18% Тахes 3% 3% Net salvage value per mile Life, years 12,000 22,000 15 15 Which is more economical? Use ROR, Future, Present and Annual Worth Method

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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