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A special-purpose 30-horsepower electric motor has an efficiency of 90%. Its purchase and installation price is $2,300 A second 30-horsepower high-efficiency motor can be purchased
A special-purpose 30-horsepower electric motor has an efficiency of 90%. Its purchase and installation price is $2,300 A second 30-horsepower high-efficiency motor can be purchased for $3,200, and its efficiency is 94%. Either motor will be operated 4,500 hours per year at full load, and electricity costs S0.10 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. Which motor should be chosen? b. For an incremental investment of $900 in the more efficient motor, what is the PW of the energy savings over the eight-year period? Click the icon to view the interest and annuity table for discrete compounding when i-18% per year. a. The Pw of the motor with the efficiency of 90% is S.. (Round to the nearest dollar)
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