Homework Answers
Let no. of hours of operation be X
Annual Electricity cost of ABC brand = 100 * 0.746 * X * 0.12 / 0.85 = 10.53176 * X = 10.532 * X
Annual Electricity cost of XYZ brand = 100 * 0.746 * X * 0.12 / 0.90 = 9.946667 * X = 9.947 * X
EUAC of ABC motor = 1600 * (A/P, 11%,10) + 190 + 10.532 * X
= 1600 * 0.169801 + 190 + 10.532 * X
= 461.68 + 10.532 * X
EUAC of XYZ motor = 5600 * (A/P, 11%,10) + 350 + 9.947 * X
= 5600 * 0.169801 + 350 + 9.947 * X
= 1300.89 + 9.947 * X
As per given condition,
461.68 + 10.532 * X = 1300.89 + 9.947 * X
10.532 * X - 9.947 * X = 1300.89 - 461.68
X = (1300.89 - 461.68) / (10.532 - 9.947)
X = 1434.55 hours ~ 1435 hours
As 2000 hours is more than breakeven hours, motor XYZ is recommended
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A firm can
purchase a centrifugal separator (5-year
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costs for the first year are expected to be
$2,100.
These
O&M
costs are projected to increase by
$500
per year each
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25%
and the MARR
is
11%
after taxes.
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of
$24,000.
The
asset will be kept in service for six years, after which it
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$25,000.
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and maintenance...
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