# There are two electric motors that can provide 100 hp. Alpha motor can be purchased at \$1,400 and has an efficiency of 80%, an estimated life of 10…

1. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at \$1,400 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of \$50/year. Beta Motor will cost \$1,000 and has an efficiency of 90%, life of 10 years and maintenance cost of \$25/year. Assume that the company internal rate of return is 15%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of \$0.05 per kilowatt hour. Please plot your results.
2. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at \$1,300 and has an efficiency of 70%, an estimated life of 12 years, and estimated maintenance costs of \$50/year. Beta Motor will cost \$1,600 and has an efficiency of 90%, life of 10 years and maintenance cost of \$25/year. Assume that the company internal rate of return is 12%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of \$0.04 per kilowatt hour. Please plot your results.
3. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at \$1,250 and has an efficiency of 74%, an estimated life of 10 years, and estimated maintenance costs of \$50/year. Beta Motor will cost \$1,600 and has an efficiency of 92%, life of 10 years and maintenance cost of \$25/year. Assume that the company internal rate of return is 15%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of \$0.05 per kilowatt hour. Please plot your results.
4. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at \$1,200 and has an efficiency of 70%, an estimated life of 12 years, and estimated maintenance costs of \$50/year. Beta Motor will cost \$1,500 and has an efficiency of 90%, life of 10 years and maintenance cost of \$25/year. Assume that the company internal rate of return is 15%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of \$0.04 per kilowatt hour. Please plot your results.
5. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at \$1,700 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of \$50/year. Beta Motor will cost \$1,400 and has an efficiency of 75%, life of 12 years and maintenance cost of \$25/year. Assume that the company internal rate of return is 18%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of \$0.06 per kilowatt hour. Please plot your results.
6. There are two electric motors that can provide 100 hp. Alpha motor can be purchased at \$1,450 and has an efficiency of 70%, an estimated life of 15 years, and estimated maintenance costs of \$50/year. Beta Motor will cost \$1,750 and has an efficiency of 90%, life of 10 years and maintenance cost of \$25/year. Assume that the company internal rate of return is 16%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of \$0.04 per kilowatt hour. Please plot your results.

Answer: Let the number of operation hours is say A peryear For Alpha, The capital recovery = 1400 * (A/P, 15%, 10) = 278.88 Operating Cost = 100*0.746*A *0.05 80% = 4.66A Maintenance Cost = 50…