Two engines are being considered for a power delivery of 500 hp. Engine A has an initial

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Two engines are being considered for a power delivery of 500 hp. Engine A has an initial cost of $15,700 while engine B costs $22,500. The specific fuel consumption rate of each engine is 0.42 lbm/hp-h for engine A and 0.40 lbm/hp-h for engine B. Both engines burn the same fuel which costs 0.329 $/lbm. Engine A is expected to last 14 years while engine B has a life of 20 years. At the end of their lives, engine A can be sold for $5,000 and engine B can be sold for $6,000. The power demand requires that the engine must operate 4 hours/day for 280 days annually. The MARR is 18%. Determine which engine should be selected for this job based on an economic analysis.

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