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. he plant engineering staff is considering a 120-kW unit of the same general design 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. stimate the cost of a 40-kW unit of the same general design. Include the cost of the $18,000 precompressor. he total cost of the 120-kW unit is $. (Round to the nearest dollar.) he cost of a 40-kW unit of the same general design is $ (Round to the nearest dollar.)

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. he plant engineering staff is considering a 120-kW unit of the same general design 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. stimate the cost of a 40-kW unit of the same general design. Include the cost of the $18,000 precompressor. he total cost of the 120-kW unit is $. (Round to the nearest dollar.) he cost of a 40-kW unit of the same general design is $ (Round to the nearest dollar.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 8E

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Six years ago, an 80-kW diesel electric set cost $150,000. The cost index for this class of equipment six years ago was 181 and is now 194.The cost-capacity factor is 0.5. 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 $17,500. Determine the total cost of the 120-kW unit. b. Estimate the cost of a 50-kW unit of the same general design. Include the cost of the $17,500 precompressor.
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