Engineering economics Investing in Electrical Efficiency Two pumps capable of delivering 100 hp to an agricultural application are being evaluated in a present economy study. The selected pump will only be utilized for one year, and it will have no market value at the end of the year. Pertinent data are summarized as follows: ABC Pump XYZ Pump Purchase price $2,900 $6,200 Maintenance cost $170 $510 Efficiency 80% 90% If electric power costs $0.10 per kWh and the pump will be operated 4,000 hours per year, which pump should be chosen? Recall that 1 hp = 0.746 kW. Choose XYZ because it provides least cost.
Engineering economics
Investing in Electrical Efficiency
Two pumps capable of delivering 100 hp to an agricultural application are being evaluated in a present economy study. The selected pump will only be utilized for one year, and it will have no market value at the end of the year. Pertinent data are summarized as follows:
ABC Pump XYZ Pump
Purchase price $2,900 $6,200
Maintenance cost $170 $510
Efficiency 80% 90%
If electric power costs $0.10 per kWh and the pump will be operated 4,000 hours per year, which pump should be chosen? Recall that 1 hp = 0.746 kW.
Choose XYZ because it provides least cost.
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