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A mechanical subcontractor wants to buy an electric generator to power his equipment rather than use electricity from the local power company. After searching the
A mechanical subcontractor wants to buy an electric generator to power his equipment rather than use electricity from the local power company. After searching the market, he found options that had a fair price, either to buy a brand new Honda Dayton KWh Electric Generator or rent it directly from the store. Furthermore, he had the option to rent the generator with the bonus of free gas for a year either per day, per week or per month. The price of the new generator was $ and it consumes $per hour for gas. He expects to use the generator hours per day and days a week. The daily rent is $ the weekly rent is $ and the monthly rent is $ The local power company is willing to provide him with power for centsKW and a fixed fee of $month plus of the total for taxes for the duration of the project.
Draw the breakeven graph.
Calculate the breakeven points. How much time should the subcontractor use the generator to make his investment profitable?
What should the subcontractor do if he needs electricity for a project that will last for months?
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