Business, 23.02.2021 05:40 marahsenno

An existing electrical power line needs to have its capacity increased, and this can be done in either of two ways. The first method is to add a second conductor to each phase wire using the same poles, insulators and fittings, at a construction cost of $15,000. The second method for increasing capacity is to build a second line parallel to the existing line, using new poles, insulators and fittings, at a construction cost of $23,000. At some time in the future, the line will require another increase in capacity, with the first alternative now requiring a second line at a cost of $32,500, and the second alternative requiring added conductors at a cost of $23,000. If interest rate is 6%, how many years between the initial expenditure and the future expenditure will make the two methods economically equal

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An existing electrical power line needs to have its capacity increased, and this can be done in eith...

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