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:
First cost, $
|
Gasoline
|
Annual M&O, $ per year
|
-150,000
|
Salvage value, $
|
-41,000
|
Life, years
|
23,000
|
|
15
|
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