A large induced-draft fan is needed for an upgraded industrial process. The moto
ID: 1168333 • Letter: A
Question
A large induced-draft fan is needed for an
upgraded industrial process. The motor to drive
this fan is rated at 100 horsepower, and the motor will
operate at full load for 8,760 hours per year. The motor’s
efficiency is 92%. Because the motor is fairly large, a
demand charge of $92 per kilowatt per year will be
incurred in addition to an energy charge of $0.08 per
kilowatt-hour. If the installed cost of the motoris $4,000,
what is the present worth of the motor over a 10-year
period when the MARR is 15% per year? (5.3)
.746 kilowatt per horsepower
Sullivan, William G.; Wicks, Elin M.; Koelling, C. Patrick (2014-01-06). Engineering Economy (16th Edition) (Page 225). Prentice Hall. Kindle Edition.
Explanation / Answer
The total present value of all cost at present value is the [present worth of motor:
The cost per year would be: 92 + 8760x0.92 x .08 = 736.736
For 10 years present value of cost would = 736.736 (1-1.15-10) /.15 = 3697.5
The present val;ue of all cost = 4000+3697.5 = $7697.5
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