A 50-kilowatt gas turbine has an investment cost of $37000. It costs another $10000 for...
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A 50-kilowatt gas turbine has an investment cost of $37000. It costs another $10000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $550 per year. Additionally, the hourly fuel expense for running the turbine is $7.25 per hour, and the turbine is expected to operate 2500 hours each year. The cost of dismantling and disposing of the turbine at the end of its 9-year life is $8500. a. If the MARR is 17% 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?
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