A special-purpose 30-horsepower electric motor has an efficiency of 91%. Its purchase and installation price is $2,200. A second 30-horsepower high-efficiency motor can be purchased for $3,100, and its efficiency is 92%. Either motor will be operated 3,500 hours per year at full load, and electricity costs $0.09 per kilowatt-hour (kWh). MARR = 12% per year, and neither motor will have a market value at the end of the eight-year study period. a. Which motor should be chosen? b. For an incremental investment of $900 in the more efficient motor, what is the PW of the energy savings over the eight-year period? Recall that 1 hp = 0.746 kW. Click the icon to view the interest and annuity table for discrete compounding when i=12% per year. a. The PW of the motor with the efficiency of 91% is $ (Round to the nearest dollar.)
A special-purpose 30-horsepower electric motor has an efficiency of 91%. Its purchase and installation price is $2,200. A second 30-horsepower high-efficiency motor can be purchased for $3,100, and its efficiency is 92%. Either motor will be operated 3,500 hours per year at full load, and electricity costs $0.09 per kilowatt-hour (kWh). MARR = 12% per year, and neither motor will have a market value at the end of the eight-year study period. a. Which motor should be chosen? b. For an incremental investment of $900 in the more efficient motor, what is the PW of the energy savings over the eight-year period? Recall that 1 hp = 0.746 kW. Click the icon to view the interest and annuity table for discrete compounding when i=12% per year. a. The PW of the motor with the efficiency of 91% is $ (Round to the nearest dollar.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A special-purpose 30-horsepower electric motor has an efficiency of 91%. Its purchase and installation price is $2,200. A second 30-horsepower high-efficiency motor
can be purchased for $3,100, and its efficiency is 92%. Either motor will be operated 3,500 hours per year at full load, and electricity costs $0.09 per kilowatt-hour
(kWh). MARR = 12% per year, and neither motor will have a market value at the end of the eight-year study period.
a. Which motor should be chosen?
b. For an incremental investment of $900 in the more efficient motor, what is the PW of the energy savings over the eight-year period? Recall that 1 hp = 0.746 kW.
Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year.
a. The PW of the motor with the efficiency of 91% is $. (Round to the nearest dollar.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31237684-89ac-4bee-b96a-aade1094de8c%2F97e67c6f-fd9d-4c90-a929-54175d644a61%2Frqjppj_processed.png&w=3840&q=75)
Transcribed Image Text:A special-purpose 30-horsepower electric motor has an efficiency of 91%. Its purchase and installation price is $2,200. A second 30-horsepower high-efficiency motor
can be purchased for $3,100, and its efficiency is 92%. Either motor will be operated 3,500 hours per year at full load, and electricity costs $0.09 per kilowatt-hour
(kWh). MARR = 12% per year, and neither motor will have a market value at the end of the eight-year study period.
a. Which motor should be chosen?
b. For an incremental investment of $900 in the more efficient motor, what is the PW of the energy savings over the eight-year period? Recall that 1 hp = 0.746 kW.
Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year.
a. The PW of the motor with the efficiency of 91% is $. (Round to the nearest dollar.)
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