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(Solved): A 50-kilowatt gas turbine has an investment cost of $37,000. It costs another $17,000 for shipping, ...
A 50-kilowatt gas turbine has an investment cost of $37,000. It costs another $17,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $400 per year. Additionally, the hourly fuel expense for running the turbine is $7.00 per hour, and the turbine is expected to operate 3,200 hours each year. The cost of dismantling and disposing of the turbine at the end of its 8 -year life is $8,000. a. If the MARR is 16% 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 16β er year. a. The annual equivalent life-cycle cost of the gas turbine is $ (Round to the nearest dollar.)