A diesel generator is needed to provide auxiliary power in the event that the primary source of power is interrupted. Various generator designs are?available, and more expensive generators tend to have higher reliabilities should they be called on to produce power. Estimates of?reliabilities, capital investment?costs, operating and maintenance?expenses, market?value, and damages resulting from a complete power failure?(i.e., the standby generator fails to?operate) are given in table below for three alternatives. If the life of each generator is 11 years and MARR=12?% per?year, which generator should be chosen if you assume one main power failure per?year? Does your choice change if you assume two main power failures per?year? (Operating and maintenance expenses remain the?same.)
A diesel generator is needed to provide auxiliary power in the event that the primary source of power is interrupted. Various generator designs are available, and more expensive generators tend to have higher reliabilities should they be called on to produce power. Estimates of reliabilities, capital investment costs, operating and maintenance expenses, market value, and damages resulting from a complete power failure (i.e., the standby generator fails to operate) are given in table below for three alternatives. If the life of each generator is 11 years and MARR = 12% per year, which generator should be chosen if you assume one main power failure per year? Does your choice change if you assume two main power failures per year? (Operating and maintenance expenses remain the same.) Click the icon to view the data on three generator designs. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. Calculate the total annual cost for each alternative if you assume one main power failure per year. (Round to the nearest hundreds.) Alternative Total Annual Cost, $ R S T Based on the total annual cost, alternative should be chosen. Calculate the total annual cost for each alternative if you assume two main power failures per year. (Round to the nearest hundreds.) Alternative Total Annual Cost, $ R S T Based on the total annual cost, alternative should be chosen.Capital O&M Cost of Alternative Investment Expenses/Year Reliability Power Failure Market Value $190,000 56,000 0.99 $400,000 $42,000 167.000 7.000 0.93 400.000 24,000 212,000 4,000 0.98 400,000 39,000Discrete Compounding; i = 12% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FIA PIA AIF AIP 1. 1200 0.8929 1.0000 0.8929 1.0000 1.1200 1.2544 0.7972 2.1200 1.6901 0.4717 0.5917 1.4049 0.7118 3.3744 2.4018 0.2963 0.4163 1.5735 0.6355 4.7793 3.0373 0.2092 0.3292 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 1.9738 0.5066 8.1152 4.1114 0.1232 0.2432 2.2107 0.4523 10.0890 4.5638 0.0991 0.2191 8 2.4760 0.4039 12.2997 4.9676 0.0813 0.2013 9 2.7731 0.3606 14.7757 5.3282 0.0677 0.1877 10 3.1058 0.3220 17.5487 5.6502 0.0570 0.1770 11 3.4785 0.2875 20.6546 5.9377 0.0484 0. 1684 12 3.8960 0.2567 24.1331 6.1944 0.0414 0.1614 13 4.3635 0.2292 28.0291 6.4235 0.0357 0.1557 14 4.8871 0.2046 32.3926 6.6282 0.0309 0.1509 15 5.4736 0.1827 37.2797 6.8109 0.0268 0.1468
