question archive TEI incorporated is considering the use of concrete electric pole in the expansion of its power distribution lines
TEI incorporated is considering the use of concrete electric pole in the expansion of its power distribution lines
Subject:FinancePrice: Bought3
TEI incorporated is considering the use of concrete electric pole in the expansion of its power distribution lines. A concrete pole costs P18,000 each and will last for 15 years. The company is presently using creosoted wooden poles which cost P12,000 per pole and will last 10 years. Assume annual taxes amount to 2% of the first cost and zero salvage value in both cases. .Evaluate the two options and recommend which one is to be chosen using the methods indicated . Money is worth 12%
