You are considering two types of electric motors for your paint shop. Financial information and operating characteristics are summarized as follows: 

If you plan to operate the motor for 2,000 hours annually, what would be  he total cost savings per operating hour associated with the more efficient brand (Brand X) at an interest rate of 12%? The motor will be needed for 10 years. Assume that power costs are 5 cents per kilowatt-hour (1 HP = 0.746kW).

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Brand Y Summary Info and Characteristics Brand X $4,500 $3,600 Price O&M cost per year $300 $500 $250 $100 Salvage value Capacity 150 HP 150 HP Efficiency 83% 80%