What is the annual equivalent cost for each motor

Assignment Help Econometrics
Reference no: EM13203434

A 100 horsepower ventilation blower is to be powered by an electric motor. Two motors have been proposed with the following cost and engineering data.

               Motor A Motor B
First Cost $9,500 $7,200
Anticipated life 15 years 15 years
Salvage Value 0 0
Efficiency at half load 88% 80%
Efficiency at 0.75 load 94% 83%
Efficiency at full load 95% 85%
Hours per year at half load 2,500 2,500
Hours per year at 0.75 load 2,500 2,500
Hours per year at full load 3,000 3,000

Power cost per kwh is $0.14. Annual maintenance, taxes and insurance will be 2.5% of the initial cost.

a. What is the annual equivalent cost for each motor?

b. What is the IRR (Internal Rate of Return) on the incremental investment to select the more expensive motor?

Reference no: EM13203434

Questions Cloud

What about the britannica on cd and the encarta on cd : By October 15, 2001, the britannica.com site cited a list-price of $59.95 (only $49.95 after mail-in rebate) for Encyclopedia Britannica 2002 Deluxe Edition CD-ROM. The thirty-two volume set still sells for a hefty $1,295. in turn, charges $74.95 ..
Find the level of measurement for each variable : Refer to wage data, which reports information on annual wages for a sample of 100 workers. Also included are variables relating to industry, years of experience, and gender for each worker.
How are the methods alike and how are they different : ANOVA allows us to determine whether variables are related. Regression analysis allows us to investigate the nature of the relationship between two (or more) variables. How are these methods alike and how are they different
Explain set of all languages is uncountable : Use this result to prove that languages exist that are not recognizable by an oracle Turing machine with oracle for ATM.
What is the annual equivalent cost for each motor : Power cost per kwh is $0.14. Annual maintenance, taxes and insurance will be 2.5% of the initial cost. a. What is the annual equivalent cost for each motor b. What is the IRR (Internal Rate of Return) on the incremental investment to select the more ..
Explain how many times will coincide : If the minute hand and the hour hand on the clock both start at 12:00 when will the two hands first coincide? How many times will they coincide in 12 hours
Find all equilibria : Find all equilibria. Classify as stable, semi-stable, or unstable using phase diagrams for the equation.
Determine which route is most attractive : The state highway department is considering six routes for a new highway. Listed below are the estimated construction costs, maintenance costs, and the user cost associated with each route. Route Construction Costs Annual Maintenance Costs Annual U..
How many yards of rope will bruce need to purchase : Bruce needs 30 five-foot pieces of rope for a school project. The hardware store sells rope by the yard. How many yards of rope will Bruce need to purchase?

Reviews

Write a Review

Econometrics Questions & Answers

  Calculate and analyze smm companys ratios

Fixed Assets Property, plant, and equipment $2,200 $1,870 $1,814 $1,422 $1,400 Less: Accumulated depreciation $400 $200 $180 $80 $75 Net property, plant, and equipment $1,800 $1,670 $1,634 $1,342 $1,325 Intangible assets $300 $240 $220 $210 $205

  What is the process capability

Design specifications require that the diameter of an automotive axel measure 200 ± 18 mm. The milling process being considered for producing the axel has a standard deviation of 10mm. a. What is the process capability

  What is the new equilibrium price and quantity

b. If the government establishes a price floor of $9, explain what will result in terms of excess demand or supply. c. If the government establishes a price ceiling of $6, explain what will result in terms of excess demand or supply.

  What is the per-worker production function

Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate.What is the per-worker production fun..

  What does iterated elimination of dominated strategies

Consider the "Odd Couple" game. Felix and Oscar share an apartment, the state of cleanliness of which is a public good. It takes 12 hours of work per week to make the apartment spotlessly clean, 9 hours to be livable, and anything less leaves the ..

  What can you infer about the elasticity of demand

However, when the commissioner granted the 10 percent increase, revenues increased by only about 5 percent. What can you infer about the elasticity of demand for taxicab rides. What were taxicab drivers assuming about the elasticity of demand.

  What is the current profit to the exporter

BMW sells 5,000 vehicles in the US. The export price is €40,000. The exchange rate is €1= $1.25. US price elasticity of demand for the German import, in terms of the $ price, is-2. The cost of each vehicle is €30,000. What is the current € profit ..

  Describe maximization of income

If the price of blue toy cars is $5 and the price of pink toy cars is $2, then which of the following consumers will make the same choices if their income is the same (assuming maximization of income) Gloria, utility is U(b,p) = b^2 * p

  Determine what is his quarterly payment

Bill Mitselfik borrowed $10,000 to be repaid in quarterly installments over the next five years.The interest rate he is being charged is 12% per year compounded quarterly. What is his quarterly payment

  By how much would total interest be greater

Suppose that the interest rate is 4 percent. What is the future value of $100 four years from now How much the future value is total interest By how much would total interest be greater at a 6 percent interest rate that at a 4 percent interest rat..

  Who has the advantage in the production of apples

Bill Oranges/ Apples 20/ 0 10/ 10 0/ 20 Brian Oranges/ Apples 10/ 0 5 /15 0/ 30 Explain who has a comparative advantage in the production of oranges and who has the advantage in the production of apples.

  How many units of saddles produced for sale

Country A produces two goods, elephants and saddles. In the year 2006, the 100 units of elephants produced sold for $2,500 per unit and the 30 units of saddles produced sold for $200 per unit. In 2007, the 120 units of elephants produced sold for ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd