There are two electric motors that can provide 100 hp. Alphamotor can be purchased at $1,250 and
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There are two electric motors that can provide 100 hp. Alphamotor can be purchased at $1,250 and has an efficiency of 74%, anestimated 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 thecompany internal rate of return is 15%. Perform a Breakevenanalysis to find out at what hours of operations the two motorcosts are the same. Assume an electricity rate of $0.05 perkilowatt hour. Please plot your results.
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