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An electric motor is 10HP. Motor A costs $800, and is 85% efficient. Motor B costs $1200 and is 90% efficient. Both motors will operate 1,500 hours at an energy rate of 0.07 per kilowatt hour. Both motors have a 15 year life span; Motor A has a salvage value of $50, Motor B has a salvage value of $100. The MARR is 8% and 1HP=0.7457kW.

Which Motor should be installed considering PW? Would this choice be the same if the motors were run 2,500 hours?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9482756

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