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A 50-kilowatt gas turbine has an investment cost of $43,000. It costs another $18,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks.

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A 50-kilowatt gas turbine has an investment cost of $43,000. It costs another $18,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $450 per year. Additionally, the hourly fuel expense for running the turbine is $7.75 per hour, and the turbine is expected to operate 3,100 hours each year. The cost of dismantling and disposing of the turbine at the end of its 8-year life is $9,000. a. If the MARR is 15% 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? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. a. The annual equivalent life-cycle cost of the gas turbine is 5 (Round to the nearest dollar.) b. % of annual life-cycle cost is related to fuel. (Round to one decimal place.)

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