Standby power for pumps at water distribution booster stations can be provided by either gasoline or diesel-powered engines. The estimates for the gasoline engines are as follows First cost, $ M&O, $ per year Salvage value, $ Life, years Gasoline -150,000 -41,000 23,000 15 If the incremental PW-based ROR equation associated with (Diesel - Gasoline) is 0= 40,000+ 11,000(P/A, Ai*, 15) + 16,000(P/F, Ai*, 15), a. What is the first cost of the diesel engine? b. Determine the highest MARR value for which Diesel is preferred over Gasoline. Investment rate and borrowing rate is given 14% and 12% respectively.

Standby power for pumps at water distribution booster stations can be provided by either gasoline or diesel-powered engines. The estimates for the gasoline engines are as follows If the incremental PW-based ROR equation associated with (Diesel - Gasoline) is 0=40,000+11,000(P/A,i,15)+16,000(P/F,i,15) a. What is the first cost of the diesel engine? b. Determine the highest MARR value for which Diesel is preferred over Gasoline. Investment rate and borrowing rate is given 14% and 12% respectively