(B) You are a process engineer for need to buy a new a company that makes fertil
ID: 2266775 • Letter: #
Question
(B) You are a process engineer for need to buy a new a company that makes fertilizer for farms. You ors. Motor 1 costs $7500 and cy. Motor 2 costs $3500 and run as 88% efficiency. Electricity electic motor for an important chemical mixing process in the plant. You are choosing between two 25 Kilowatt mot runs at 92% efficien cost $.12 per kilowatt-hour. You would run each motor for 5000 hours per year (AW meth period is 6 years and your MARR = 12%. Based on the annual worth of study, which motor should you buy and buy how much? Answer Box:Explanation / Answer
The process engineer of a company should take utmost care for the products purchasing for an industry.
For making fertilizer for farms a process engineer is required. To buy a electric motor we must check the efficiency of the motor and cost also is the main consideration.
Choosing 25 kilowatt motors of quantity
Motor 1 costs $7500 and runs 92% efficiency, motor costs $3500 and runs with 88% efficiency .
And electricity cost is $0.12 per kilowatt hour
study period is 6 years.
Lets us find the total cost for motor .
for buying a motor we need $7500, let us consider the output both the motors is 25kw, as the efficiency is given the input of the motor can be calculated .
efficiency % = (Pout/ Pin)*100
efficiency = 25KW/ Pin
Pin = 25/0.92 = 27.173 Kw
To run for 5000 hours the energy consumption = Pin *5000 kwh
= 27.17*5000
= 135869.5652 kwh
Hence the electricity cost = 135869.5652 *0.12 = $16304.34
hence the total cost = motor cost +electricity cost = $ 23804.347
repeat the same procedure for motor 2:
efficiency % = (Pout/ Pin)*100
efficiency = 25KW/ Pin
Pin = 25/0.88 = 28.409 Kw
To run for 5000 hours the energy consumption = Pin *5000 kwh
= 28.409*5000
= 142045.45 kwh
Hence the electricity cost = 142045.45 *0.12 = $17045.45
hence the total cost = motor cost +electricity cost = $ 20545.45
hence we can conclude that the utilizationj of motor 1 costs $ 23804.347 and motor 2 costs $ 20545.45
And MARR = 12 %
Minimum acceptable rate of return is nothing but the profit whicg is taken by the manager before starting the process.
As I'm the manager now , if i Operate the motor 1 the profit is $ 2856.52 and profit if motor 2 is $ 2465.454.
By the above results If motor 2 is operated instead of motor 1 we have profit of $3258.897+2465.454 = $5724.351
If motor 1 is operated instead of motor 2 we have profit of (-$3258.897+2856.52 = - 402.377$
That is loss of $402.3775
Hence we can use motor 2 instead of motor 1.
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