Problem
Six years ago, an 80-kW diesel electric set cost $160,000. The cost index for this class of equipment six years ago was 187 and is now 194. The cost-capacity factor is 0.6.
a. The plant engineering staff is considering a 120-kW unit of the same general design to power a small isolated plant. Assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $18,000. Determine the total cost of the 120-kW unit.
b. Estimate the cost of a 40-kW unit of the same general design. Include the cost of the $18,000 precompressor.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.