= proposed to place a cable on an existing pole line along the shore c anect two points on opposite sides. Land Submarine Route Route Length, 10 miles First cost of cable per P45,871 P64,887 mile Annual Maintenance P1,005 P3,994 per mile Interest 18% 18% Net salvage value per P12,924 P22,049 mile Useful Life, 15 15 years

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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It is proposed to place a cable on an existing pole line along the shore of a lake to
connect two points on opposite sides.
Land
Submarine
Route
Route
Length,
10
miles
First cost of
cable per P45,871 P64,887
mile
Annual
Maintenance P1,005
P3,994
per mile
Interest
18%
18%
Net salvage
value per P12,924 P22,049
mile
Useful Life,
15
15
years
What is the savings per year when you picked the more economical compare to the
other route. Use EUAC method when comparing.
DELL
Transcribed Image Text:It is proposed to place a cable on an existing pole line along the shore of a lake to connect two points on opposite sides. Land Submarine Route Route Length, 10 miles First cost of cable per P45,871 P64,887 mile Annual Maintenance P1,005 P3,994 per mile Interest 18% 18% Net salvage value per P12,924 P22,049 mile Useful Life, 15 15 years What is the savings per year when you picked the more economical compare to the other route. Use EUAC method when comparing. DELL
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