second motors operate with input-output efficiency levels of 79% and 76%, respetively, and cost $5,200 and $3,500, again, respectively. Annual operational costs for each motor will be 14% of its initial value. If power costs are five cents per kW-hour, what is the minimum hours of operation required per year to justify the purchase of the more expensive alternative at i= 12%?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question
8. Two alternative motors are being considered for installation to a metal sheet pressing machine. Both motors have an output
power of 180 x 0.746 kW and are projected to have a zero salvage value after a service duration of 10 years. The first and
second motors operate with input-output efficiency levels of 79% and 76%, respetively, and cost $5,200 and $3,500, again,
respectively. Annual operational costs for each motor will be 14% of its initial value. If power costs are five cents per
kW-hour, what is the minimum hours of operation required per year to justify the purchase of the more expensive alternative
at i= 12%?
The motor should be used for a minimum of
hours per year to justify the purchase of the more expensive
alternative. (Round up to the nearest integer.)
Transcribed Image Text:8. Two alternative motors are being considered for installation to a metal sheet pressing machine. Both motors have an output power of 180 x 0.746 kW and are projected to have a zero salvage value after a service duration of 10 years. The first and second motors operate with input-output efficiency levels of 79% and 76%, respetively, and cost $5,200 and $3,500, again, respectively. Annual operational costs for each motor will be 14% of its initial value. If power costs are five cents per kW-hour, what is the minimum hours of operation required per year to justify the purchase of the more expensive alternative at i= 12%? The motor should be used for a minimum of hours per year to justify the purchase of the more expensive alternative. (Round up to the nearest integer.)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.