Perform breakeven analysis

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There are two electric motors that can provide 100 hp, (Assume an internal company rate of return of 15%) Alpha motor can be purchased at $1,000, an estimated life of 10 years, estimated maintenance costs of $50/year and labor rate of $9 per hour. Beta Motor will cost $1,400, an estimated life of 10 years, maintenance cost of $25/year and labor rate of $8 per hour. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same and plot your results.

Reference no: EM132303714

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