Question: 5-6. 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

 5-6. A large induced-draft fan is needed for an upgraded industrial

5-6. 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 kilo- watt-hour. If the installed cost of the motor is $4,000, what is the present worth of the motor over a 10-year period when the MARR is 15% per year? (5.3) A) Determine the NPV considering an interest rate of 15% per year B) Determine the equivalent annualized value (EAW) of the project with the same interest rate

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