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second motors operate with input-output efficiency levels of 79% and 76%, respetively, and cost $5,200 and $3,500, again, respectively. Annual operational costs for each motor will be 14% of its initial value. If power costs are five cents per kW-hour, what is the minimum hours of operation required per year to justify the purchase of the more expensive alternative at i= 12%?

second motors operate with input-output efficiency levels of 79% and 76%, respetively, and cost $5,200 and $3,500, again, respectively. Annual operational costs for each motor will be 14% of its initial value. If power costs are five cents per kW-hour, what is the minimum hours of operation required per year to justify the purchase of the more expensive alternative at i= 12%?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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8. Two alternative motors are being considered for installation to a metal sheet pressing machine. Both motors have an output power of 180 x 0.746 kW and are projected to have a zero salvage value after a service duration of 10 years. The first and second motors operate with input-output efficiency levels of 79% and 76%, respetively, and cost $5,200 and $3,500, again, respectively. Annual operational costs for each motor will be 14% of its initial value. If power costs are five cents per kW-hour, what is the minimum hours of operation required per year to justify the purchase of the more expensive alternative at i= 12%? The motor should be used for a minimum of hours per year to justify the purchase of the more expensive alternative. (Round up to the nearest integer.)
Transcribed Image Text:8. Two alternative motors are being considered for installation to a metal sheet pressing machine. Both motors have an output power of 180 x 0.746 kW and are projected to have a zero salvage value after a service duration of 10 years. The first and second motors operate with input-output efficiency levels of 79% and 76%, respetively, and cost $5,200 and $3,500, again, respectively. Annual operational costs for each motor will be 14% of its initial value. If power costs are five cents per kW-hour, what is the minimum hours of operation required per year to justify the purchase of the more expensive alternative at i= 12%? The motor should be used for a minimum of hours per year to justify the purchase of the more expensive alternative. (Round up to the nearest integer.)
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