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 P 25,000.00 P 32,000.00 Electrical Efficiency Maintenance per year Life, years 84% 88% 400 600 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
P 25,000.00
P 32,000.00
Electrical Efficiency
Maintenance per year
Life, years
84%
88%
400
600
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?
Transcribed Image Text: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 P 25,000.00 P 32,000.00 Electrical Efficiency Maintenance per year Life, years 84% 88% 400 600 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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