A 50-kilowatt gas turbine has an investment cost of $39,000. It costs another $15,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense forthis turbine is $350 per year. Additionally, the hourly fuel expense for running the turbine is $8.00 per hour, and the turbine is expected to operate 3,300 hours each year. The cost of dismantling and disposingof the turbine at the end of its 9-year life is $7,500.a. If the MARR is 12% per year, what is the annual equivalent life-cycle cost of the gas turbine?b. What percent of annual life-cycle cost is related to fuel?Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year.a. The annual equivalent life-cycle cost of the gas turbine is $More InfoN12345678910CompoundAmountFactorTo Find FGiven PFIP1.12001.25441.40491.57351.76231.97382.21072.47602.77313.1058PresentWorth FactorTo Find PGiven FPIF0.89290.79720.71180.63550.56740.50660.45230.40390.36060.3220PrintCompoundAmountFactorTo Find FGiven AFIA1.00002.12003.37444.77936.35288.115210.089012.299714.775717.5487PresentWorth FactorTo Find PGiven APIA0.89291.69012.40183.03733.60484.11144.56384.96765.32825.6502DoneSinkingFundFactorTo Find AGiven FAIF1.00000.47170.29630.20920.15740.12320.09910.08130.06770.0570CapitalRecoveryFactorTo Find AGiven PAIP1.12000.59170.41630.32920.27740.24320.21910.20130.18770.1770-X

Purchasing cost of a 50-kilowatt gas turbine is $39,000.The cost of shipping, insurance, site…

A 50-kilowatt gas turbine has an investment cost of $39,000. It costs another $15,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $350 per year. Additionally, the hourly fuel expense for running the turbine is $8.00 per hour, and the turbine is expected to operate 3,300 hours each year. The cost of dismantling and disposing of the turbine at the end of its 9-year life is $7,500. a. If the MARR is 12% per year, what is the annual equivalent life-cycle cost of the gas turbine? b. What percent of annual life-cycle cost is related to fuel?

A 50-kilowatt gas turbine has an investment cost of $39,000. It costs another $15,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $350 per year. Additionally, the hourly fuel expense for running the turbine is $8.00 per hour, and the turbine is expected to operate 3,300 hours each year. The cost of dismantling and disposing of the turbine at the end of its 9-year life is $7,500. a. If the MARR is 12% per year, what is the annual equivalent life-cycle cost of the gas turbine? b. What percent of annual life-cycle cost is related to fuel?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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