Standby power for pumps at water distribution booster stations can be provided by either gasoline-or diesel-powered engines. The costs for the gasoline engines are as follows: Gasoline First cost, $ Annual M&O, $ per year Salvage value, $ Life, years - 150,000 -41,000 23,000 15 The incremental PW cash flow equation associated with (diesel - gasoline) is 0 = -40,000 + 11,000 (P/A, i, 15) + 16,000(P/F, i, 15) Determine the following: (a) First cost of the diesel engines (b) Annual M&O cost of the diesel engines (c) Salvage value of the diesel engines

Standby power for pumps at water distribution booster stations can be provided by either gasoline-or diesel-powered engines. The costs for the gasoline engines are as follows: Gasoline First cost, $ Annual M&O, $ per year Salvage value, $ Life, years - 150,000 -41,000 23,000 15 The incremental PW cash flow equation associated with (diesel - gasoline) is 0 = -40,000 + 11,000 (P/A, i, 15) + 16,000(P/F, i, 15) Determine the following: (a) First cost of the diesel engines (b) Annual M&O cost of the diesel engines (c) Salvage value of the diesel engines

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please only do: if you can teach explain steps of how to solve each part what is the optimizatio formula that was use for foc? please solve each part
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