A waste heat recovery heat exchanger ( also called a recuperator ) is to be installed in a boiler system of a geothermal cogeneration plant. The initial cost of the recuperator is $ 1 4 , 0 0 0 . It is estimated that the recuperator will save $ 3 0 0 0 per year from the fuel it saves. It will take $ 5 0 0 per year to operate and maintain the recuperator. The system will require a major maintenance after every 3 years for a cost of $ 1 5 0 0 . The lifetime of the system is 1 5 years after which the recuperator will have a salvage value of $ 1 2 0 0 . Take the inflation - adjusted interest ratio to be 5 percent. Determine the levelized annual value of this project and the benefit cost ratio.