Determine the break-even point in hours of use per year b. If the actual hours use per year is estimated as 3000 which motor would you recommend and what would be the savings.
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The purchase of one of two 500hp motors A and B is better considered. Motor A costs P12,000 and P3,000 to install. Motor B costs P15,000 and P5,000 to install. Motor A is 95% efficient, with P150 annual maintenance. Motor B is 92% efficient with P300 annual maintenance. Fixed charges are 15% and energy cost P750 and hour to run the less efficient motor. Fixed charges are based on installed cost of motors.
a. Determine the break-even point in hours of use per year
b. If the actual hours use per year is estimated as 3000 which motor would you recommend and what would be the savings.
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