The Average Cost of a SuperSized Turbine Suppose a new super

The Average Cost of a Super-Sized Turbine. Suppose a new super-sized turbine is developed. Fill in the blanks in the following table.

Solution

Total cost = Purchase price of turbine + Installation cost + Operating cost = $(500,000 + 125,000 + 200,000)

= $825,000

Average cost = $825,000 / 40 million = $0.0206