Operations And Supply Chain Management Assignment Help – justify its purchase

Question – A motor with a.200-horsepower output is needed in the factory for intermittent use A Graybar motor
costs $7000, and has an electrical efficiency of 89%. A B1ueball motor costs $6000 and has an 85%
efficiency. Neither motor would have any salvage value, as the cost to remove it would equal its scrap
value. The annual maintenance cost for either motor is estimated at. $300 per year Electric power
costs $O.072/kilowatt-hour (1 hp = 0.746 kW). If a 10% interest rate is used in the calculations, what
is the minimum number of hours the higher initial cost Graybar motor must be used each year to
justify its purchase?
Oct 13 2013 06:58 AM

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