IT executives at the medical instrument company met your recommendations for expansion with great enthusiasm. Now they’ve asked you to price out your new backbone solution. They offer you some additional details to help you complete your task. Thanks to business tax incentives, the company’s buildings are located in a rural area of North Dakota where fiber-optic cable has not yet been installed. Because the company will have to hire a contractor to lay the cable, your research focuses on outside plant contractors who specialize in fiber-optic cable installation. Other sources of information might include rural public utilities that use the same kinds of contractors, statistics on rural fiber costs per mile, or trade groups such as The Fiber Optic Association. Approximately how much will it cost to connect the four buildings as you suggested? (For now, the company isn’t concerned with the added cost of new connectivity equipment or inside wiring.) How much of the installation cost covers labor and how much covers the actual cable? What other, less-obvious costs will the medical instrument company have to consider?
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