Determine the cost-effectiveness of replacing a 10-hp motor with an efficiency of 85 percent with a premium-efficiency

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Determine the cost-effectiveness of replacing a 10-hp motor with an efficiency of 85 percent with a premium-efficiency motor with a rated full-load efficiency of 91.70 percent. Assume that:

• The cost of electricity is $0.10/kWh.

• The differential cost of a premium versus standard motor is $300.

• The average load factor of the motor is 0.80 .

• The average full-load operating hours of the motor are 5,000 hr/year.

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