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Determine the first cost of the diesel engines

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Reference no: EM13881982

Standby power for pumps at water distribution booster stations can be provided by either gasolineor diesel-powered engines. The costs for the gasoline engines are as follows:

First cost, $

Gasoline

Annual M&O, $ per year

-150,000

Salvage value, $

-41,000

Life, years

23,000

 

15

The incremental PW cash flowsequation 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

Reference no: EM13881982

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