You are considering buying a 30-HP electric motor which has an efficiency rating of 89%. The motor costs $10,000 and will be used for 10 years. The expected salvage value at that time is $1,000. The cost to run the electric motor is $0.09 per kWh for 2,000 hours a year. ( 1 HP = 0.7457 kW.) What is the total equivalent cost (present worth) of owning and operating the motor for 10 years at an interest rate of 12% per year?(a) $35,242(b)$25,884(c) $32,426(d) $22,425

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Q: For a MARR of 12%, which heating system should be installed?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.