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1. Two 100-horsepower motors are being considered for use in the following table: Brand A Brand X P1,900 10 Purchase Price P6,200 Useful life in years 10 Market Value None None Annual Maintenance Expense Efficiency P170 P310 80% 90% a. If the power costs P0.10 per kWh, and the interest rate is 12% per year, how many hours of operation per year are required to justify the purchase of Brand X? (1hp 0.746 kW) b. Given your answer in Part (a). which motor would you select if the motor is expected to operate 2000 hours per year?

1. Two 100-horsepower motors are being considered for use in the following table: Brand A Brand X P1,900 10 Purchase Price P6,200 Useful life in years 10 Market Value None None Annual Maintenance Expense Efficiency P170 P310 80% 90% a. If the power costs P0.10 per kWh, and the interest rate is 12% per year, how many hours of operation per year are required to justify the purchase of Brand X? (1hp 0.746 kW) b. Given your answer in Part (a). which motor would you select if the motor is expected to operate 2000 hours per year?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. Two 100-horsepower motors are being considered for use in the following table: Brand A Brand X P1,900 10 Purchase Price P6,200 10 Useful life in years Market Value None None Annual Maintenance Expense Efficiency P170 P310 80% 90% a. If the power costs P0.10 per kWh, and the interest rate is 12% per year, how many hours of operation per year are required to justify the purchase of Brand X? (1hp 0.746 kW) b. Given your answer in Part (a), which motor would you select if the motor is expected to operate 2000 hours per year?
Transcribed Image Text:1. Two 100-horsepower motors are being considered for use in the following table: Brand A Brand X P1,900 10 Purchase Price P6,200 10 Useful life in years Market Value None None Annual Maintenance Expense Efficiency P170 P310 80% 90% a. If the power costs P0.10 per kWh, and the interest rate is 12% per year, how many hours of operation per year are required to justify the purchase of Brand X? (1hp 0.746 kW) b. Given your answer in Part (a), which motor would you select if the motor is expected to operate 2000 hours per year?
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