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q(1)- the equivalent annual costs for system A ? q(2)- the equivalent annual cost for system B ? q(3)- the equivalent operating cost per hour
q(1)- the equivalent annual costs for system A ?
q(2)- the equivalent annual cost for system B ?
q(3)- the equivalent operating cost per hour for process A is ?
q(4) the equivalent operating cost per hour for process B is ?
please answer all questions
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 38,000 gallons per 1,000 hours of operation at the average load encountered in passenger service System B costs $310,000 and uses 25,000 gallons per 1,000 hours of operation at the same level. have before any major overhaul is required. On the basis of the initial investment, the systems h 16% salvage values. If jet Both engine systems three-year lives fuel costs $1.95 a gallon (year 1) and fuel consumption is expected to increase at the rate of 12% per year because of degrading engine efficiency, which engine 000 hours of operation per year and a system should the firm install? ume MARR of 10%. 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. E Click the icon to view the interest factors for discrete compounding when MARR -10% per vearStep by Step Solution
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