3. Two electric motors are being considered to power an industrial hoist. Each is capable of providing 100 hp. Pertinent data each motor are as follows: Motor A Motor B P32,000 Investment P 25,000 Electrical Efficiency 84% 88% Annual Maintenance 400 600 Life, years 10 10 Money is worth 20%, If the expected usage of the hoist is 700 hours per year, what would the cost of electrical power have to be before Motor A is favored over Motor B?

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3. Two electric motors are being considered to power an industrial hoist. Each is capable of
providing 100 hp. Pertinent data each motor are as follows:
Motor A
Motor B
Investment
P 25,000
84%
P32,000
88%
Electrical Efficiency
Annual Maintenance
400
600
Life, years
10
10
Money is worth 20%, If the expected usage of the hoist is 700 hours per year, what would the cost
of electrical power have to be before Motor A is favored over Motor B?
Transcribed Image Text:3. Two electric motors are being considered to power an industrial hoist. Each is capable of providing 100 hp. Pertinent data each motor are as follows: Motor A Motor B Investment P 25,000 84% P32,000 88% Electrical Efficiency Annual Maintenance 400 600 Life, years 10 10 Money is worth 20%, If the expected usage of the hoist is 700 hours per year, what would the cost of electrical power have to be before Motor A is favored over Motor B?
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