Question: A new machine is required to upgrade a process. The equipment to drive the machine is rated at 200 horsepower and will operate on full

A new machine is required to upgrade a process. The equipment to drive the machine is rated at 200 horsepower and will operate on full load for 8760 hours per year. The equipment’s efficiency is 90%. Because the equipment is fairly large, a demand charge of $90 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 machine is $3500, what is the PW of the machine over a 10 year period when MARR=15% per year?

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