Determine the breakeven costs for installing a 1,000-kVA transformer for a new building with an efficiency of 99.28% rather than 98.90%. If the annual load factor is 80%, the average building’s power factor is 0.90, and the electricity cost is $0.12/kWh. Consider two options for the economic analysis:

• Vary for the life cycle from 10 years to 60 years with the discount rate kept at 5%.

• Vary the discount rate from –10% to 10% with the life cycle of the transformer is assumed to be 50 years.