Your plant needs to buy a 1000-hp motor for a new conveyor belt. You have the following information:

(1) A standard motor having 90% efficiency costs $96,000. 

(2) A high-efficiency motor having 95% efficiency costs $145,000.

(3) The motor will be operating 6 days a week, 16 h per day, all year round.

(4) The energy cost to your plant is $0.10/kWh. 

(5) The cost of money to your company is 1% per month; and 

(6) The life of the motor is 30 years. As the project manager, you are considering buying a high-efficiency motor. Ignoring the savings in the demand charge, first determine the savings per month in the energy cost. At that monthly savings, determine the discounted payback period for the additional cost of a high-efficiency motor. Would you buy the high-efficiency motor? Why? Be quantitative in your answer.