7. An airline is considering two different engine systems for its planes. System 1 costs $200,000 and uses 30,000 gallons per 1,000 hours of operation System 2 costs $150,000 and uses 35,000 gallons per 1,000 hours of operation. Both engine systems have four-year lives before requiring a maintenance overhaul. The airline estimates a salvage value of 15% of the initial investment cost at the end each engine's service life. If jet fuel costs $1.71 per gallon and fuel consumption is expected to increase at a rate of 3% per year for system 1 and 5% per year for system 2, which engine system should the airline install? Assume 2,000 hours of operation per year and a MARR of 12%. Using the AE criterion, what is the equivalent operating cost per hour for each engine? FORMULA(S)