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

ENGR.ECONOMIC ANALYSIS
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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?

30. Two electric motors are being considered to power an industrial hoist. Each can provide 100 hp. Pertinent data for
cach motor are as follows:
Motor A
Motor B
Investment
P25,000
P32,000
Electrical Efficiency
Maintenance per year
Life, years
84%
88%
400
600
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:30. Two electric motors are being considered to power an industrial hoist. Each can provide 100 hp. Pertinent data for cach motor are as follows: Motor A Motor B Investment P25,000 P32,000 Electrical Efficiency Maintenance per year Life, years 84% 88% 400 600 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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