Each of the two pumps (ABC and XYZ) can deliver an actualamount of 100 hp to an
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Each of the two pumps (ABC and XYZ) can deliver an actualamount of 100 hp to an agricultural application. Both are beingevaluated in a present economy study. The selected pump will onlybe utilized for one year, and it will have no market value at theend of the year. Pertinent data are summarized as follows:
If electric power costs $0.10 per kWh and the pump will beoperated 4,000 hours per year, which pump should be chosen? Recallthat 1 hp = 0.746 kW.
ABC Pump $2,900 $170 XYZ Pump $6,200 Purchase Price Annual Maintenance $510 Efficiency 80% 90%
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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