What hours of operation the two motor costs are the same

Assignment Help Business Economics

Reference no: EM131169458

There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,400 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,000 and has an efficiency of 90%, life of 10 years and a maintenance cost of $25/year. Assume that the company internal rate of return is 15%. Perform a breakeven analysis to find out at what hours of operation the two motor costs are the same. Assume an electricity rate of $0.05 per kilowatt hour.

Reference no: EM131169458

Questions Cloud

Negotiating coin-binding of policies vs liberalization : What are the main elements of WTO reform agenda? Please describe clearly through these sector: Core elements of the WTO’s modus operandi. Matching instruments to objectives: What problems do proposed reforms fix? Forum for Negotiatons (Agenda-setting..

What are the transfer coefficients for each of the two firms : Two identical firms save money from polluting. A firm’s marginal saving from emitting an amount e are given by 10-2e. The two firms differ in their impact on ambient pollution concentrations. Two units of emission from firm 1 result in one unit of am..

Find the formula of income-consumption curve : Chloe consumes chicken wing (x) and beer (y). Let Px+Py=M be Chloe’s budget constraint and her utility function is U(x, y)=5xy. Find the formula of income-consumption curve. Find the demand functions of chicken wing.

Accounting profit is greater than marketing costs : Regarding microeconomics, which of the following statements is correct? accounting profit is greater than marketing costs. accounting profit is different from economic profit. accounting costs include opportunity costs. economic profit is less than p..

What hours of operation the two motor costs are the same : There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,400 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,000 and has an efficiency ..

Firm to produce as opposed to shutting down in the short-run : What conditions are necessary for a firm to produce as opposed to shutting down in the short-run? State the condition in terms of totals (total revenue, total cost and/or its components). State the condition in terms of per unit values (namely, price..

Strict conformity to the institutional characteristics : As judged by strict conformity to the institutional characteristics. Pure competition is relatively rare. a. Then why study it? b. Give two example of industries that closely fit this category of market structures and briefly indicate how they fit th..

What should policymakers do to prevent another major crisis : From the late 1980s through 2007, inflation remained fairly tame--a period known as The Great Moderation. Mainstream economists argued that the problems of macroeconomic instability and stagflation had been solved. However, the Global Financial Crisi..

What is the major uncertainty in using pollution tax : Explain how an economist would determine the optimal level of a pollution tax. What is the major uncertainty in using a pollution tax? What are some particular problems with stock pollutants? Why might a reduction in emissions levels of a stock pollu..

User Account

All Pages