Motors from two different manufacturers are being considered for application. Both motors are 50Hp, 460 volts, 3 phase, 60 cycles. Motor A operates at 80% efficiency and motor B operates at 89% efficiency. The expected need for the motor is 15 years. Motor A cost P120, 000.00 and motor B P150, 000.00. Electrical energy cost P8.00 per Kw-Hr and the motors will be operating 8 hours per day, 250 days a year. Assume taxes and insurance are 3% of first cost. Which motor should be purchased?

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Motors from two different manufacturers are being considered for application.

Both motors are 50Hp, 460 volts, 3 phase, 60 cycles. Motor A operates at 80%

efficiency and motor B operates at 89% efficiency. The expected need for the

motor is 15 years. Motor A cost P120, 000.00 and motor B P150, 000.00.

Electrical energy cost P8.00 per Kw-Hr and the motors will be operating 8 hours

per day, 250 days a year. Assume taxes and insurance are 3% of first cost. Which

motor should be purchased?

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