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A large induced-draft fan is needed for and upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8760 hours per year. The motor's efficiency is 92%. Because the motor is fairly large, a demand change for $92 per kilowatt per year will be incurred in addition to an energy change of $0.08 per kilowatt hour. If the installed cost for the motor us $4,000, what is the present worth of the motor over a 10-year period when MARR is 15% per year?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91417007

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