A 50-kilowatt gas turbine has an investment cost of $42,000. It costs another $12,000 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 2,800 hours each year. The cost of dismantling and disposing of the turbine at the end of its 10-year life is $8,500. a. If the MARR is 15% 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 15% per year. a. The annual equivalent life-cycle cost of the gas turbine is $ (Round to the nearest dollar.)

A 50-kilowatt gas turbine has an investment cost of $42,000. It costs another $12,000 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 2,800 hours each year. The cost of dismantling and disposing of the turbine at the end of its 10-year life is $8,500. a. If the MARR is 15% 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 15% per year. a. The annual equivalent life-cycle cost of the gas turbine is $ (Round to the nearest dollar.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

A 50-kilowatt gas turbine has an investment cost of $42,000. It costs another $12,000 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 2,800 hours each year. The cost of dismantling and disposing of the turbine at the end of its 10-year life is
$8,500.
a. If the MARR is 15% 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 15% per year.
a. The annual equivalent life-cycle cost of the gas turbine is $. (Round to the nearest dollar.)

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