Question

An oil well is located on a side road 0,8 kilometers from the main road. The storage tanks are on the main road, 3.5 kilometers from the intersection with the side road. A pipeline is to be built connecting the well to the tanks. It costs $2000 per kilometer if it is built along the roads or $3000 per kilometer if it is built across the land, directly to the tanks. Which way is cheaper, along the roads or across the land? How much cheaper?

Answer 1

See the attached picture for the calculation.

Although the pipe line would be longer along the roads it would be cheaper.