A manufacturing machine is requiring main power motor to be replaced and two motors consider to select one from. Motor A has operation load 15 hp with efficiency 60%, while motor B has 10 hp with 75% efficiency. The cost of installation for motor A is $2,410 and its market value is $80 after a useful life of 8 years, and $4,820 is the installation cost for motor B with no market value. Assume MARR is 12%, and the cost of electricity is $0.06/kWh in the facility location. After installing the selected motor, it is expected to operate 2,000 hours per year. T1

A manufacturing machine is requiring main power motor to be replaced and two motors consider to select one from. Motor A has operation load 15 hp with efficiency 60%, while motor B has 10 hp with 75% efficiency. The cost of installation for motor A is $2,410 and its market value is $80 after a useful life of 8 years, and $4,820 is the installation cost for motor B with no market value. Assume MARR is 12%, and the cost of electricity is $0.06/kWh in the facility location. After installing the selected motor, it is expected to operate 2,000 hours per year. T1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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