A 400-kW cogeneration system has an overall efficiency of 86 percent. The cogeneration system produces hot water at a thermal efficiency of 24 percent. Determine the cost-effectiveness of installing the cogeneration system in a facility at a cost of $60,000. The cost of electricity, if purchased directly from the utility, is $0.09/kWh and the cost of natural gas, used to operate the cogeneration system, is $1.50/therm. Without the cogeneration system, a gas-fired boiler with an efficiency of 85 percent is utilized to produce hot water needed by the facility. Assume that:

a. The cogeneration system, as well as the facility, is operated 6,500 hr/year.

b. The maintenance cost of the cogeneration system is $0.015/kWh.

c. Perform a life-cycle analysis using a life cycle of 20 years and a discount rate of 5 percent.