A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year. The motor’s efficiency is 92%. Because the motor is fairly large, a demand charge of $92 per kilowatt per year will beincurred in addition to an energy charge of $0.08 per kilowatt-hour. If the installed cost of the motor is $4,000, what is the present worth of the motor over a 10-year period when the MARR is 15% per year?
A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year. The motor’s efficiency is 92%. Because the motor is fairly large, a demand charge of $92 per kilowatt per year will beincurred in addition to an energy charge of $0.08 per kilowatt-hour. If the installed cost of the motor is $4,000, what is the present worth of the motor over a 10-year period when the MARR is 15% per year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year. The motor’s efficiency is 92%. Because the motor is fairly large, a demand charge of $92 per kilowatt per year will be
incurred in addition to an energy charge of $0.08 per kilowatt-hour. If the installed cost of the motor is $4,000, what is the present worth of the motor over a 10-year period when the MARR is 15% per year?
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