Motor A Motor B Investment Php 27,300 Php 35,000 Electrical efficiency 85% 89% Maintenance per year Php 450 Php 670 Life, years 10 10 Money is worth 19%. If the expected usage of the hoist is 720 hours per year, what would the cost of

Motor A Motor B Investment Php 27,300 Php 35,000 Electrical efficiency 85% 89% Maintenance per year Php 450 Php 670 Life, years 10 10 Money is worth 19%. If the expected usage of the hoist is 720 hours per year, what would the cost of

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Two electric motors are being considered to power an industrial hoist. Each is capable of providing 100 hp.
Pertinent data for each motor are as follows:
Motor A
Motor B
Investment
Php 27,300 Php 35,000
Electrical efficiency
85%
89%
Maintenance per year
Php 450
Php 670
Life, years
10
10
Money is worth 19%. If the expected usage of the hoist is 720 hours per year, what would the cost of electrical
power have to be before Motor A is favored over Motor B? (Answer is in Php per kwh.)

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