Question
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
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 the first cost and have a yearly power loss of $500/km.
Other costs are:
| Around the lake | Under the lake | |
|---|---|---|
| Length | 15 km | 5 km |
| First cost | $9,000/km | $25,000/km |
| Maintenance | $200/km/yr | $300/km/yr |
Required:
1. Develop the cash flow diagram for both alternatives.
2. Apply the annual analysis.
3. Which one should be considered?
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Interne Revision In Verbundgruppen Und Franchise Systemen Verbreitung Und Qualit T Der Internen Revision In Unternehmensnetzwerken
Authors: Hans Ulrich Westhausen
1st. Aufl. 2016 Edition
3658121963, 978-3658121969
