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Two electric motors are being considered to power an industrial hoist. Each can provide 100 hp. Pertinent data for each motor are as follows:

 

Two electric motors are being considered to power an industrial hoist. Each can provide 100 hp. Pertinent data for each motor are as follows: Motor A Motor B Investment P25,000 P32,000 Electrical Efficiency 84% 88% Maintenance per year 400 600 Life, years 10 10 Money is worth 20%. If the expected usage of the hoist is 700 hours per year, what would the cost of electrical power have to be before Motor A is favored over Motor B?

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