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An integrated wireless network with a satellite link provides connectivity within a 10km radius. A cable operator is studying three bandwidth alternatives. Assume a life

An integrated wireless network with a satellite link provides connectivity within a 10km radius. A cable operator is studying three bandwidth alternatives. Assume a life of 20 years and a TMAR of 10% per year to determine the best option using the incremental rate of return approach.

Bandwidth Mbps

Initial cost

$ x 1000

Cost of operation

$ x 1000

annual income

$ x 1000

44 -40,000 -2,000

+5,000

55 -46,000 -1,000 +5,000
88 -61,000 -500

8,000

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