A power plant for generating electricity is one part of a industrial plant. Two alternative power plants with necessary capacity have been suggested. One uses a boiler and steam turbine while the other uses a gas turbine.

	Boiler and steam turbine	Gas turbine
Initial investiment	$600000	$400000
Fuel costs per year	$16000	$24000
Maintenance per year	$12000	$15000
Insurance per year	$18000	$12000
service life	20 years	10 years
Salvage value at end of life	$0	$0

All other costs are the same for either type of power plant. A 12% return is required on any investiment. If one these plants must be accepted, which one should be recommended?