A special-purpose 30-horsepower electric motor has an efficiency of 89%. Its purchase and installation price is $2,100. A second 30-horsepower high-efficiency motor can be purchased for $3,200,and its efficiency is 92%. Either motor will be operated 4,000 hours per year at full load, and electricity costs $0.10 per kilowatt-hour (kWh). MARR=18% per year, and neither motor will have a market value at the end of the eight-year study period.

a. The PW of the motor with the efficiency of 89% is $____

The PW of the motor with the efficiency of 92% is $____

Which motor should be chosen?

b. The PW of the net benefit from the incremental investment into a more efficient motor is $____