Problem 7 [12 points total] Two possible routes for a power line are under study. Data on the routes are as follows: Aro

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Problem 7 12 Points Total Two Possible Routes For A Power Line Are Under Study Data On The Routes Are As Follows Aro 1 (191.37 KiB) Viewed 14 times

Problem 7 [12 points total] Two possible routes for a power line are under study. Data on the routes are as follows: Around the lake Under the lake 4 km 15 km Length First cost $5000/km $25,000/km Annual maintenance $200/km $300/km Useful life in years 18 12 Salvage value $3000/km $5000/km Annual power loss / km $500/km $500/km If the MARR is 7% annual effective, explain how you would decide between these two alternatives (remember to draw cash flow diagrams).