2.1 Soumya lives along the banks of the Missouri River and is aware that her house may flood. Two electric motors are being considered to drive a pump needed to keep the basement dry, but she only has cash for one of the motors. Each motor is capable of delivering 55 horsepower of output to the pumping operation. It is expected that the motors will be in use 700 hours per year. The following data are available: Motor A: Investment = $1,400, Electrical efficiency = .75, Annual maintenance = $135, Useful life = 4 Motor B: Investment = $1,700, Electrical efficiency = .8, Annual maintenance = $115, Useful life = 6 Assume that electricity costs $0.06 per kilowatt-hour, the projects are both repeatable, and that Soumya uses a MARR of 6% per year. Neither pump retains any salvage value at the end of its lifetime. Recall that 1 hp = 0.746 kW. Efficiency defines what percentage of the power drawn from the power outlet is actually converted to useful output. As a result, both pumps deliver 55 hp of useful output, but Motor A will consume more electricity because it is less efficient. What is the annual worth of both options? Round to the nearest dollar. (Note: treat costs as negative numbers) a. Motor A? b Motor B? 2.1 Soumya lives along the banks of the Missouri River and is aware that her house may flood. Two electric motors are being considered to drive a pump needed to keep the basement dry, but she only has cash for one of the motors. Each motor is capable of delivering 55 horsepower of output to the pumping operation. It is expected that the motors will be in use 700 hours per year. The following data are available: Motor A: Investment = $1,400, Electrical efficiency = .75, Annual maintenance = $135, Useful life = 4 Motor B: Investment = $1,700, Electrical efficiency = .8, Annual maintenance = $115, Useful life = 6 Assume that electricity costs $0.06 per kilowatt-hour, the projects are both repeatable, and that Soumya uses a MARR of 6% per year. Neither pump retains any salvage value at the end of its lifetime. Recall that 1 hp = 0.746 kW. Efficiency defines what percentage of the power drawn from the power outlet is actually converted to useful output. As a result, both pumps deliver 55 hp of useful output, but Motor A will consume more electricity because it is less efficient. What is the annual worth of both options? Round to the nearest dollar. (Note: treat costs as negative numbers) a. Motor A? b Motor B
