Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please use annual value or present value calculation to solve this 19. There are two electric motors that can provide 100 hp. Alpha motor can
Please use annual value or present value calculation to solve this
19. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $3,100 and has an efficiency of 100%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $2,800 and has an efficiency of 80%, life of 10 years and maintenance cost of $25/year. Assume that the company internal rate of return is 15%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of $0.04 per kilowatt hour. Please plot your results. 19. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $3,100 and has an efficiency of 100%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $2,800 and has an efficiency of 80%, life of 10 years and maintenance cost of $25/year. Assume that the company internal rate of return is 15%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of $0.04 per kilowatt hour. Please plot your results Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started