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PART II. An industrial firm received an offer for the supply of the two electric motors which are being considered to power an industrial hoist.

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PART II. An industrial firm received an offer for the supply of the two electric motors which are being considered to power an industrial hoist. Each motor is capable of providing 100 hp. Other pertinent data for each motor are as follows: Moter A: investment (P 25,000): Efficiency (84%); Maintenance/year (P 400): Motor B investment (P 32,000): Efficiency (88%); Maintenance/year (P600). Both motors has a 10 years life. If the expected usage of the hoist is 700 hrs per year, what would be the cost of electrical power before motor A is forwarded to motor B considering money is worth 20% Your answer A pipe line 6000 m long is to convey a sewage having some corrosive effect. Bids have been received for reinforced concrete, cast iron and steel. Because of the varying hydraulic qualities of the inside surfaces the reinforced concrete was to be 39 inches in diameter, the cast iron pipe 42 inches in diameter and steel 45 inches in diameter. The assumed length of life of the materials are 100,75 and 50 years for cast iron, concrete and steel respectively. Annual maintenance costs are assumed as P 600 for cast iron, P 900 for concrete and P 3.600 for steel. The bids are P 770,000 cast iron, P 790,000 for reinforced concrete and P 580,000 for steel. If interest rate is 5%, which of the bid is favorable? Your answer PART II. An industrial firm received an offer for the supply of the two electric motors which are being considered to power an industrial hoist. Each motor is capable of providing 100 hp. Other pertinent data for each motor are as follows: Moter A: investment (P 25,000): Efficiency (84%); Maintenance/year (P 400): Motor B investment (P 32,000): Efficiency (88%); Maintenance/year (P600). Both motors has a 10 years life. If the expected usage of the hoist is 700 hrs per year, what would be the cost of electrical power before motor A is forwarded to motor B considering money is worth 20% Your answer A pipe line 6000 m long is to convey a sewage having some corrosive effect. Bids have been received for reinforced concrete, cast iron and steel. Because of the varying hydraulic qualities of the inside surfaces the reinforced concrete was to be 39 inches in diameter, the cast iron pipe 42 inches in diameter and steel 45 inches in diameter. The assumed length of life of the materials are 100,75 and 50 years for cast iron, concrete and steel respectively. Annual maintenance costs are assumed as P 600 for cast iron, P 900 for concrete and P 3.600 for steel. The bids are P 770,000 cast iron, P 790,000 for reinforced concrete and P 580,000 for steel. If interest rate is 5%, which of the bid is favorable? Your

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