The cost of a new 40

-

kilowatt generator is $30,000. Its annual maintenance

costs are estimated at $500. The energy that can be generated annually at full

load is estimated to be 100,000 kilowatt

-

hours. If the value of the energy

generated is

$0.08 per kilowatt

-

hour, determine the annual worth of this

generator at full load capacity? Take the MARR to be 9% and the salvage value

of the machine to be $2,000 at the end of its estimated life of 15 years.