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What would be the cost of electrical power have

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Question - Two electric motors are being considered to power an industrial hoist. Each is capable of providing 100 hp. Pertinent data for each motor are as follows:

Motor A

Investment = P25,000

Electrical efficiency = 84%

Maintenance per year = 400

Life, years = 10

Motor B

Investment = P32,000

Electrical efficiency = 88%

Maintenance per year = 600

Life, years = 10

Money is worth 20%. If the expected usage of the hoist is 700 hours per year, what would be the cost of electrical power have to be before Motor A is favored over motor B?

Reference no: EM132956954

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