Two 100-horsepower motors are being considered for use in the following table: Brand X Brand Y P102,543.95 P334,617.10 10 10 None None Purchase Price Useful life in years Market Value Annual Maintenance Expense Efficiency BE 40. 130/L P9,174.99 80% P16,730.85 90% 100

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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2. Two 100-horsepower motors are being considered for use in the following table:
Brand Y
P102,543.95 P334,617.10
Brand X
Purchase Price
Useful life in years
10
10
Market Value
None
None
Annual Maintenance
Expense
Efficiency
P16,730.85
90%
P9,174.99
80%
If the power costs P5.40 per kWh, and the interest rate is 12% per year, how many hours of
a.
operation per year are required to justify the purchase of Brand Y? (1hp = 0.746 kW)
%3D
Transcribed Image Text:2. Two 100-horsepower motors are being considered for use in the following table: Brand Y P102,543.95 P334,617.10 Brand X Purchase Price Useful life in years 10 10 Market Value None None Annual Maintenance Expense Efficiency P16,730.85 90% P9,174.99 80% If the power costs P5.40 per kWh, and the interest rate is 12% per year, how many hours of a. operation per year are required to justify the purchase of Brand Y? (1hp = 0.746 kW) %3D
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