There are two electric motors that can provide 100 hp alpha, Ask an Expert

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There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,400 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,000 and has an efficiency of 90%, life of 10 years and a maintenance cost of $25/year. Assume that the company internal rate of return is 15%. Perform a breakeven analysis to find out at what hours of operation the two motor costs are the same. Assume an electricity rate of $0.05 per kilowatt hour.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91924870

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