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Question 2 (Z points) Two possible routes for a power line are under study. Data on the routes are as shown in the following table:

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Question 2 (Z points) Two possible routes for a power line are under study. Data on the routes are as shown in the following table: Option Information Around the Lake Under the Lake Length 15 km 5 km First Cost S5000/km $25,000 /km Maintenance cost $200/km/yr $400/km/yr Useful Life (years) 15 20 Salvage Value $3000/km S5000/km Yearly power loss S500/km S500/km Annual Taxes 12% of the first cost2% of the first cost If MARR 10%, which alternative should you select? Justify your answer. (7 points)

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