A replacement electric motor is being considered for purchase. It is capable of providing 200 hp. The pertinent data are follows: Cost - 3200 dollars Maintenance Cost per year - 50 dollars Life expectancy - 14years Salvage value after - 1,429.93 dollars The motor is used for 400 h/year and the cost of electricity is 0.0 dollars/kWh. What is most nearly the effective annual cost using an interest rate of 10%
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- Two 70 horsepower motors are being considered for use. If power costs $0.18 per kWh, and if the interest rate is 15%, how many hours of operation per year is required to justify the purchase of XYZ brand motor? (1 HP=0.746 kW) Which motor would you select if the motor is expected to operate 2500 hours per year? Let X = operating hours per year. Questions; a. The annual energy cost of electrical power for Motor ABC is ( .... × X).(Round to three decimal places.) b. The annual energy cost of electrical power for Motor XYZ is $( .... ×X).(Round to three decimal places.) c. Minimum ..... hours of operation per year are required to justify the purchase of XYZ brand motor. (Round to the nearest whole number.)An energy conservation option with a first cost of $10,000 is installed. It requires $600 per year maintenance and saves $ 5000 per year in utilities. If the maintenance costs escalate at 3%, utility costs escalate at 5% and the discount rate is 12%, what is the 3-year life cycle cost?The expenses included in the fabrication of a wind turbine for a planned Wind Farm is $73,000 annually. A wise Electrical Engineer developed an alternative that by spending $16,000 now to modify the rotor blades and adjust the gear box, the yearly cost will decrease to $58,000 next year and $52,000 at the end of year 2 until 5. If the interest rate is 10% per year, what is the present worth of the cost savings because of the modification and adjustment?
- Consider the investment in a wind turbine with the data below. You are told the fixed charge rate (FCR) does not include the cost of retirement, which is $250K at the end of year 30. You are also told that there is a production tax credit of $0.012/kWh. What is the LCOE for this turbine? Data Wind Turbine Purchase cost $1950/kW Installation cost $600,000 Levelized fixed charge rate 18% Plant rating 1.5 MW Capacity factor 0.30 Discount rate 8%A precision lathe costs $11,300 and will cost $26,500 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Enter your answer as positive value. Round your answer to the nearest cent.) The equivalent annual cost $The system in an energy conservation option has a first cost of $25,000. It requires $2,000 per year maintenance and saves $5,000 per year in utilities. This option will last 15 years with no salvage value. What is the 15-year life cycle cost assuming energy cost escalation of 4% annually, maintenance cost escalation 2% annually, and a 5% discount rate? What if the discount rate is 15%?
- A flexible pavement construction project is proposed. The estimated service life is 20 years. The initial cost is estimated at $205,000, and it would have a salvage value of $34,000 at the end of its useful life. The yearly maintenance is estimated at $2,505. What would be the present worth of life-cycle costs? What will be the user cost savings annually to justify the pavement construction ? Use interest rate of 5%.A business is considering purchasing a piece of new equipment for $200,000. The equipment will generate the following revenues: Year 1: $50,000Year 2: $50,000Year 3: $50,000Year 4: $60,000The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%. 2. What is the compounded return(IRR) for this project?3. You are planning to build a small Savonius wind power system that will provide 8600 kWh of electricity each year for your home. The installed cost of the system is $1.62/Winstalled. You estimate that the system will have a capacity factor of 18% and a 10-year life. The interest rate is 8% with an operations and maintenance cost of $0.03/kWhgenerated- What is the levelized cost of electricity for the system ($/kWh)?
- An untreated electric wooden pole that will last 15 years under a certain soilcondition costs P1500. If a treated pole will last for 25 years, what is themaximum justifiable amount that can be paid for the treated pol, if themaximum return on investment is 15%? Consider annual taxes and insuranceamount to 2% of first cost.1. An environmental testing company needs to purchase equipment 2 years from nowand expects to pay $50,000 at that time. At a real interest rate of 10% per year andinflation rate of 4% per year, what is the present worth of the cost of the equipment?You are planning to invest in a machine for your manufacturing facility. The machine costs P55,400, and it has an expected useful life of 5 years. You estimate that the machine will generate an annual net cash flow (revenue minus expenses) of P21,000. The interest rate is 5% per year. 1. Disregarding the revenue, what is the future value of the machine cost? 2. What is the present value of the revenue in its 5 years of useful life? Is it worth the investment compared to the machine cost? 3. What is the future value of the revenue in its 5 years of useful life? is it worth the investment compared to the future value of the machine cost? 4. Suppose that at there is a maintenance expense of P3,000 at the first year, P3,500 at the second year, P4,000 at the third year, P4,500 at the fourth year, and P5,000 at the last year. What is the present value of the maintenance expense?