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Please neatly show all work x Problem 6-48 (algorithmic) Question Help An airline is considering two types of engine systems for use in its planes.

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x Problem 6-48 (algorithmic) Question Help 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 $110,000 and uses 45,000 gallons per 1,000 hours of operation at the average load encountered in passenger service. System B costs $250,000 and uses 28,000 gallons per 1,000 hours of operation at the same level. Both engine systems have three-year lives before any major overhaul is required. On the basis of the initial investment, the systems have 8% salvage values. If jet fuel costs $2.07 a gallon (year 1) and fuel consumption is expected to increase at the rate of 11% per year because of degrading engine efficiency, which engine system should the firm install? Assume 2,000 hours of operation per year and a MARR of 7%. 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. Click the icon to view the interest factors for discrete compounding when MARR = 7% per year The equivalent annual costs for system A are S (Round to the nearest dollar.) The equivalent annual costs for system B are $ (Round to the nearest dollar.) The equivalent operating cost per hour for process Ais $ (Round to the nearest cent.) The equivalent operating cost per hour for process B is $ (Round to the nearest cent.) Which engine system should be selected? Choose the correct answer below. O O System A System B

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