Question six years ago an 80-kw diesel electric set cost, Ask an Expert

Economics

Question: Six years ago, an 80-kW diesel electric set cost $160,000. The cost index for this class of equipment six years ago was 187 and is now 194. The cost-capacity factor is 0.6.

a. The plant engineering staff is considering a 120-kW unit of the same general design to power a small isolated plant. Assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $18,000. Determine the total cost of the 120-kW unit.

b. Estimate the cost of a 40-kW unit of the same general design. Include the cost of the $18,000 precompressor.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92314273

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