Purchase cost-maintenance-plus electric power consumption

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A motor capable of delivering 200 hp to steel rolling mill drive is being evaluated in a present economy study. The selected motor will only be utilized for one year, and it will have no market value at the end of the year. Pertinent data are summarized as follows: Motor costs $6,000, requires annual maintenance of $360, and operates with 80 percent efficiency. If electric power costs $0.115 per kilowatt hour and the motor will be operated 3,500 hours per year, what is the annual expense for the motor (purchase cost, maintenance, plus electric power consumption). (Enter your answer as a number without the dollar sign.)

Reference no: EM13797773

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