Each of the two pumps (ABC and XYZ) can deliver an actualamount of 100 hp to an agricultural application. Both are beingevaluated in a present economy study. The selected pump will onlybe utilized for one year, and it will have no market value at theend of the year. Pertinent data are summarized as follows:

If electric power costs $0.10 per kWh and the pump will beoperated 4,000 hours per year, which pump should be chosen? Recallthat 1 hp = 0.746 kW.

ABC Pump $2,900 $170 XYZ Pump $6,200 Purchase Price Annual Maintenance $510 Efficiency 80% 90%

Purchase Price Annual Maintenance Efficiency ABC Pump $2,900 $170 80% XYZ Pump $6,200 $510 90%