Induced-draft fan is needed for upgraded industrial process

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A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year. The motor’s efficiency is 92%. Because the motor is fairly large, a demand charge of $92 per kilowatt per year will be incurred in addition to an energy charge of $0.08 per kilowatt-hour. If the installed cost of the motoris $4,000, what is the present worth of the motor over a 10-year period when the MARR is 15% per year? (5.3)

Sullivan, William G.; Wicks, Elin M.; Koelling, C. Patrick (2014-01-06). Engineering Economy (16th Edition) (Page 225). Prentice Hall. Kindle Edition.

Reference no: EM13859486

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