ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Data for two 50-hr motors are follows:
Honda Motor
Kawasaki Motor
Original Cost
Annual Maintenance
Life, years
Efficiency
Taxes and Insurance
The cost of electricity per kilowatt-hour is two dollars. If money has a value of 20%, how many
hours per year must the motors run at full load to be equally economical? Which motor is more
affordable if the predicted number of operating hours per year is more than the break-even point?
a. Calculate the power consumption of Honda Motors in terms of X.
b. Calculate the power consumption of Kawasaki Motors in terms of X.
c. Solve for the break-even point.
37,500
48,000
750
1,500
10
10
87%
3%
92%
3%
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Transcribed Image Text:Data for two 50-hr motors are follows: Honda Motor Kawasaki Motor Original Cost Annual Maintenance Life, years Efficiency Taxes and Insurance The cost of electricity per kilowatt-hour is two dollars. If money has a value of 20%, how many hours per year must the motors run at full load to be equally economical? Which motor is more affordable if the predicted number of operating hours per year is more than the break-even point? a. Calculate the power consumption of Honda Motors in terms of X. b. Calculate the power consumption of Kawasaki Motors in terms of X. c. Solve for the break-even point. 37,500 48,000 750 1,500 10 10 87% 3% 92% 3%
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