Suppose you are planning the rollout of high-speed Internet access in rural Gondwania. There are 18 sub-regions of rural Gondwania, which have the characteristics set out in Table 1.
There are two possible plans for each region: A: install fiber now; B: install wireless now and upgrade to fiber after the number of years indicated in Table 1. Use present value analysis, over a twenty year horizon, with a discount coefficient of 12%, to work out the preferred plan for each region. When a network is upgraded from wireless to fiber, the cost of the upgrade is the same as the cost of installing fiber in year 1, when expressed in current $.
In cases where both plans require negative returns over the plan duration, the plan with the least negative return should be preferred. Determine the best overall plan and the net revenue, in present-value $, for each region
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