Two possible routes for a power line are under study. In both cases, the power line will last 15 years, have no salvage value, have annual property taxes of 2% of first cost, and have a yearly power loss of $500/km.

	Around the lake	Under the lake
Length	16 km	6 km
First cost	$8800/km	$24,000 /km
Maintenance	$175/km/yr	$325 /km/yr

If 9% interest is used, FIND

1. EUAC (Under) (round to nearest $100)

2. EUAC (Around) (round to nearest $100)

3. Which alternative do you recommend? (Under/Around)

PLEASE USE EXCEL TO SOLVE AND PLS SHOW EXCEL FORMULAS