A 50-kilowatt gas turbine has an investment cost of 37000, Ask an Expert

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A 50-kilowatt gas turbine has an investment cost of $37,000. It costs another $16,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $350 per year. Additionally, the hourly fuel expense for running the turbine is $7.25 per hour, and the turbine is expected to operate 2, 900 hours each year. The cost of dismantling and disposing of the turbine at the end of its 6-year life is $9,000. If the MARR is 13% per year, what is the annual equivalent life-cycle cost of the gas turbine? 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 13% per year.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92269135

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