Two electric motors are being economically evaluated for use in a submersible robotic device. Each is capable

Question:

Two electric motors are being economically evaluated for use in a submersible robotic device. Each is capable of delivering 90 horsepower to a necessary application that the device performs. Data for the mutually exclusive motors are as follows.

The MARR is 12% per year. If the expected usage of the motor is 500 hours per year, what would the cost of electric power have to be before the Phillips motor is favored over the General Electric motor? Recall that 1 horsepower = 0.746 kilowatts. Choose the closest answer from those below.
(a) $0.02 per kWh
(b) $0.19 per kWh
(c) $0.09 per kWh
(d) $0.05 per kWh

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...