Should power line be routed around the lake or under lake


Two possible routes for a power line are under study. Data on the routes are as follows:

Around the Lake Under the Lake

Length 15 km 5km

First cost $5000/km $25,000/km

Maintenance $200/km/yr $400/km/yr

Useful life, in years 15 15

Salvage value $3000/km $5000/km

Yearly power loss $500/km $500/km

Annual property taxes 2% of first cost 2% of first cost

If 7% interest is used, should the power line be routed around the lake or under the lake?

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Mechanical Engineering: Should power line be routed around the lake or under lake
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