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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

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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 for

$3,200,

and its efficiency is

94%.

Either motor will be operated

3,500

hours per year at full load, and electricity costs

$0.09

per kilowatt-hour (kWh).

MARR=15%

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? Recall that 1 hp = 0.746 kW.

LOADING...

Click the icon to view the interest and annuity table for discrete compounding when

i=15%

per year.

Question content area bottom

Part 1

a. The PW of the motor with the efficiency of

90%

is

$enter your response here.

(Round to the nearest dollar.)

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 3,500 hours per year at full load, and electricity costs $0.09 per kilowatt-hour (kWh). MARR = 15\% 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? Recall that 1hp=0.746kW. Click the icon to view the interest and annuity table for discrete compounding when i=15% a. The PW of the motor with the efficiency of 90% is $. (Round to the nearest dollar.)

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