Question: An electric replacement pump is being considered for purchase. It is capable of providing 200 horsepower. The data are as follows: cost = $3200 electric

An electric replacement pump is being considered for purchase. It is capable of providing 200 horsepower. The data are as follows: cost = $3200 electric efficiency = 0.85 maintenance cost per year = $50 life expectancy =14 years The pump is used for 400 hours per year and the cost of electricity is $0.04 per kW-h. Assuming the pump will have no salvage value and using straight line depreciation, what will be the monthly cost?

Choices: a.$667 b.$238 c.$235 d.$647

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