Two electric motors are being economically evaluated for the use in unmanned vehicle. Each is capable of delivering 90 horsepower to a necessary application that the vehicle performs. Data for the mutually exclusive motors as follows: If the expected usage of the motor is 700 hours per year, what would the cost of electric power have to be (in $ per kWh) before the Motor Y is favored over the Motor X? Use i =10% per year. (1 horsepower = 0.746 kilowatts)
Two electric motors are being economically evaluated for the use in unmanned vehicle. Each is capable of delivering 90 horsepower to a necessary application that the vehicle performs. Data for the mutually exclusive motors as follows: If the expected usage of the motor is 700 hours per year, what would the cost of electric power have to be (in $ per kWh) before the Motor Y is favored over the Motor X? Use i =10% per year. (1 horsepower = 0.746 kilowatts)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Two electric motors are being economically evaluated for the use in unmanned vehicle. Each is capable of delivering 90 horsepower to a necessary application that the vehicle performs. Data for the mutually exclusive motors as follows:
If the expected usage of the motor is 700 hours per year, what would the cost of electric power have to be (in $ per kWh) before the Motor Y is favored over the Motor X? Use i =10% per year. (1 horsepower = 0.746 kilowatts)
Transcribed Image Text:Motor X Motor Y
$2,500
Initial investment
$3,200
Electricity efficiency
0.76
0.91
Annual maintenance
$450
$600
Useful life (years)
12
12
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