Length, miles First cost of cable per mile Annual Maintenance per mile Interest Net salvage value per mile Useful Life, years Land Route 10 P45,871 P1,005 18% P12,924 15 Submarine Route 5 P64,887 P3,994 18% P22,049 15

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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Land Route
Submarine Route
Length, miles
10
First cost of cable per mile
P45,871
P64,887
Annual Maintenance per mile
P1,005
P3,994
Interest
18%
18%
Net salvage value per mile
P12,924
P22,049
Useful Life, years
15
15
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.
What is the savings per year when you picked the more economical compare to the other route. Use
EUAC method when comparing.
Transcribed Image Text:Land Route Submarine Route Length, miles 10 First cost of cable per mile P45,871 P64,887 Annual Maintenance per mile P1,005 P3,994 Interest 18% 18% Net salvage value per mile P12,924 P22,049 Useful Life, years 15 15 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. What is the savings per year when you picked the more economical compare to the other route. Use EUAC method when comparing.
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