Standby power for pumps at water distribution booster stations can be provided by either gasolineor diesel-powered engines. The costs for the gasoline engines are as follows:
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First cost, $
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Gasoline
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Annual M&O, $ per year
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-150,000
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Salvage value, $
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-41,000
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Life, years
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23,000
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15
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The incremental PW cash flowsequation associated with (diesel - gasoline) is 0 = - 40,000 + 11,000( P/A , i ,15) + 16,000( P/F , i ,15)
Determine the following:
(a) First cost of the diesel engines
(b) Annual M&O cost of the diesel engines
(c) Salvage value of the diesel engines