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?