1. 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 factoris 0.6.
(a) The plant engineering staff is considering a120-kW unit of the same general design to power a small isolated plant. Assume we want to add a pre compressor, 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 pre compressor.