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An airline is considering two types of engine systems for use in its planes. Each has the same life and the same maintenance and repair

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An airline is considering two types of engine systems for use in its planes. Each has the same life and the same maintenance and repair record. System A costs $90,000 and uses 42,000 gallons per 1,000 hours of operation at the average load encountered in passenger service. System B costs $330,000 and uses 30,000 gallons per 1,000 hours of operation at the same level. per year and a MARR of 13%. Use the AE criterion. What is the equivalent operating cost per hour for each engine? Assume an end-of-year convention for the fuel cost. More Info

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