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Problem 6-28 (algorithmic) Festione Two 180 horsepower (HP) motors are being considered for installation at a municipal sewag
Single Payment Compound Present Amount Worth Factor Factor (F/P, I, N) (P/F, I, N) 1.1400 0.8772 1.2996 0.7695 1,4815 0.6750
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Answer #1

Let X be no. of hours of operation

EUAC of first motor = 6600 * (A/P,14%,10) + 0.1 * 6600 + 180 * 0.746 * 0.05 / 0.81 * X

= 6600 * 0.1917 + 0.1 * 6600 + 8.288889 * X

= 1925.22 + 8.288889 * X

EUAC of second motor = 5000 * (A/P,14%,10) + 0.1 * 5000 + 180 * 0.746 * 0.05 / 0.77 * X

= 1458.50 + 8.719480 * X

As per given condition

1925.22 + 8.288889 * X = 1458.50 + 8.719480 * X

1925.22 - 1458.50 = 8.719480 * X - 8.288889 * X

X = (1925.22 - 1458.50) / (8.719480 - 8.288889) = 1083.90 ~ 1084 hours

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