Question
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
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.)Step by Step Solution
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