Thank you for the 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 $100,000 and uses 40,000 gallons per 1,000 hours of operation at the average load encountered in passenger service. System B costs $240,000 and uses 29,000 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 10% salvage values. If jet fuel costs $2.39 a gallon (year 1) and fuel consumption is expected to increase at the rate of 6% per year because of degrading engine efficiency, which engine system should the firm install? Assume 3,000 hours of operation per year and a MARR of 12%. 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. Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Amount Worth Amount Fund Worth Recovery Factor Factor Factor Factor Factor Factor JAUN-Z (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1.1200 0.8929 1.0000 1.0000 0.8929 1.1200 1.2544 0.7972 2.1200 0.4717 1.6901 0.5917 1.4049 0.7118 3.3744 0.2963 2.4018 0.4163 1.5735 0.6355 4.7793 0.2092 3.0373 0.3292 1.7623 0.5674 6.3528 0. 1574 3.6048 0.2774 1.9738 0.5066 8.1152 0.1232 4.1114 0.2432 2.2107 0.4523 10.0890 0.0991 4.5638 0.2191 2.4760 0.4039 12.2997 0.0813 4.9676 0.2013 2.7731 0.3606 14.7757 0.0677 5.3282 0.1877 3.1058 0.3220 17.5487 0.0570 5.6502 0.1770 The equivalent annual costs for system A are $ (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 A is $ . (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 System A System B