An untreated electric wooden pole that will last 10 years under certain soil condition cost ₱20,000. 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 20%. Consider annual taxes and insurance amount to be 1% of first cost.

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Chapter1: Making Economics Decisions
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An untreated electric wooden pole that will last 10 years under certain soil condition cost
₱20,000. 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 20%. Consider annual
taxes and insurance amount to be 1% of first cost.

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