Compressors, Gas Turbines and Jet Engines
Intercooling in gas turbines

Increases net output and thermal efficiency both
Increases net output but decreases thermal efficiency
Decreases net output and thermal efficiency both
Decreases net output but increases thermal efficiency

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Compressors, Gas Turbines and Jet Engines
The assumption made in two stage compression with inter-cooler is that

There is no pressure drop in the inter-cooler
The suction and delivery of air takes place at constant pressure
The compression in both the cylinders is polytropic
All of the listed here

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