(7-4) An untreated electric wooden pole that will last 10 years under certain soil condition costs P1,200. If a treated pole will last for 20 years, what is the maximum justifiable amount that can be paid for the treated pole, if the maximum return on investment is 12%? Consider annual taxes and insurance amount to be 1% of first cost. (ME Board Problem - Oct, 1988)

(7-4) An untreated electric wooden pole that will last 10 years under certain soil condition costs P1,200. If a treated pole will last for 20 years, what is the maximum justifiable amount that can be paid for the treated pole, if the maximum return on investment is 12%? Consider annual taxes and insurance amount to be 1% of first cost. (ME Board Problem - Oct, 1988)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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