What is annual equivalent life-cycle cost of gas turbine

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A 50-kilowatt gas turbine has an investment cost of S40,000. It costs another S17,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $500 per year. Additionally, the hourly fuel expense for running the turbine is $7.50 per hour, and the turbine is expected to operate 3,300 hours each year. The cost of dismantling and disposing of the turbine at the end of its 6-year life is $7,500. 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?

Reference no: EM131076310

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