Question: A replacement electric motor is being considered for purchase. It is capable of providing 200.00 hp. The pertinent data are as follows: Cost $3,548.43 Maintenance

A replacement electric motor is being considered for purchase. It is capable of providing 200.00 hp. The pertinent data are as follows: Cost $3,548.43 Maintenance cost per year 137.99 Useful Life 14 vears Salvage value $2,388.44 The motor is used for 400 hours/ year and the cost of electricity is $0.06/KW*h (1 hp - 0.746 KW). What is most nearly the effective annual cost using an interest rate of 10%

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