An electric cooperative's power generation costs $3.20/kWh. Data for two 50-horsepower motors are as shown below. If the interest rate is 20%, determine how many hours should the motors be operated at full load for them to be economical. If the number of hours exceeds the breakeven point, which of the two motors is more economical?

An electric cooperative's power generation costs $3.20/kWh. Data for two 50-horsepower motors are as shown below. If the interest rate is 20%, determine how many hours should the motors be operated at full load for them to be economical. If the number of hours exceeds the breakeven point, which of the two motors is more economical?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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