Okay, so first, let's establish an equation for the cost of the pipeline - we'll call it c(x):
x is the distance along the shore, away from S, that the pipeline meets land.
The amount of pipeline on land is quite simple to calculate, it's just 8-x, and the distance it travels underwater can be worked out using Pythagoras' theorem, giving us the expression:
=kT\sqrt{x^2+5^2}+(8-x)T)
We want to find the minimum of this function, so we'll differentiate it:
=kT\frac{x}{\sqrt{x^2+25}}-T=0)
Now, it makes sense that x can take values from 0 to 8. What we want is for the minimum to occur at x=8, which will occur if the function is either at a turning point, or still decreasing when x=8. If it were increasing, the minimum of the graph would occur to the left of x=8, and hence the most cost efficient method of drilling is no longer direct from P to R.
<0\implies kT\frac{8}{\sqrt{8^2+25}}-T<0)
Rearranging for k:

The stem of the question also tells us that k is greater than 1, so the range of values k can take is:
)
.
Alternatively, from a less mathematical and more practical standpoint, you could realise that as k gets larger, it becomes less and less efficient to lay the pipeline underwater and it would be cheaper to shorten the underwater distance if k gets really big. Recognising this, we could find the value of k when c'(

=0 and state that k would always be less than that.