| Question |
Standby power for pumps at water booster stations can be provided by either gasoline-or diesel-powered engines. The costs for the gasoline engines are as follows: First cost, $ ………………………. – 150,000 Annual M&O, $ per year …… –41,000 , $ ……………….. 23,000 Life, years ………………………… 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) of the diesel engines |
