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Two 150 horsepower motors are being considered for the company's expansion, as presented in the table below (1 hp = 0.746 kw, Php10 per Kw-hour): Purchase price Useful life Market value Motor A Php 200,000 10 years None Motor B Php 250,000 10 years 2,500

Two 150 horsepower motors are being considered for the company's expansion, as presented in the table below (1 hp = 0.746 kw, Php10 per Kw-hour): Purchase price Useful life Market value Motor A Php 200,000 10 years None Motor B Php 250,000 10 years 2,500

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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Two 150 horsepower motors are being considered for the company's expansion, as presented in the table below (1 hp = 0.746 kw, Php10 per Kw-hour): Purchase price Useful life Market value Annual maintenance cost Efficiency Motor A MARR Php 200,000 Annual operational cost 15,000 10 years None 10,000 80% 10% per year Motor B Php 250,000 10 years 2,500 30,000 5,000 90% How many hours of operations can the company chose either motor A or motor B (the breakeven hours for both motors)? If the motor is to operate for less than and greater than the break-even hours for both motors, which motor should be chosen? 1. How many hours of operations can the company chose either motor A or motor B (the breakeven hours for both motors)? 2. If the motor is to operate for less than the break-even hours for both motors, which motor should be chosen? 3. If the motor is to operate for greater than the break-even hours for both motors, which motor should be chosen?
Transcribed Image Text:Two 150 horsepower motors are being considered for the company's expansion, as presented in the table below (1 hp = 0.746 kw, Php10 per Kw-hour): Purchase price Useful life Market value Annual maintenance cost Efficiency Motor A MARR Php 200,000 Annual operational cost 15,000 10 years None 10,000 80% 10% per year Motor B Php 250,000 10 years 2,500 30,000 5,000 90% How many hours of operations can the company chose either motor A or motor B (the breakeven hours for both motors)? If the motor is to operate for less than and greater than the break-even hours for both motors, which motor should be chosen? 1. How many hours of operations can the company chose either motor A or motor B (the breakeven hours for both motors)? 2. If the motor is to operate for less than the break-even hours for both motors, which motor should be chosen? 3. If the motor is to operate for greater than the break-even hours for both motors, which motor should be chosen?
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