Two electric motors to power industrial elevators are being considered. Everyone can reach 100 hp. The relevant data of each engine is as follows: Motor A Motor B Investment $25,000 $32,000 Electrical Efficiency 84% 88% Maintenance Per Year 400 600 Life, Years 10 10 The money is worth 20%. If the expected usage time of the hoist is 700 hours per year, what is the cost of electricity required before motor A is better than motor B
Two electric motors to power industrial elevators are being considered. Everyone can reach 100 hp. The relevant data of each engine is as follows: Motor A Motor B Investment $25,000 $32,000 Electrical Efficiency 84% 88% Maintenance Per Year 400 600 Life, Years 10 10 The money is worth 20%. If the expected usage time of the hoist is 700 hours per year, what is the cost of electricity required before motor A is better than motor B
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Two electric motors to power industrial elevators are being considered. Everyone can reach 100 hp. The relevant data of each engine is as follows:
Motor A | Motor B | |
Investment | $25,000 | $32,000 |
Electrical Efficiency | 84% | 88% |
Maintenance Per Year | 400 | 600 |
Life, Years | 10 | 10 |
The money is worth 20%. If the expected usage time of the hoist is 700 hours per year, what is the cost of electricity required before motor A is better than motor B?
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