Now to pay for her basic country club membership expenses (including the $20,000
ID: 2761063 • Letter: N
Question
Now to pay for her basic country club membership expenses (including the $20,000 bond) over the next 30 years. She can earn an APR of 6%, compounded monthly, on her investments. What amount must this person now commit to the membership? (5.3) A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year. The motor's j efficiency is 92%. Because the motor is fairly large, a demand charge of $92 per kilowatt per year will be incurred in addition to an energy charge of $0.08 per kilowatt-hour. If the installed cost of the motor is $4,000, what is the present worth of the motor over a 10-year i period when the MARR is 15% per year? A new municipal refuse-collection truck can beExplanation / Answer
Step1: Computation of the present worth of demand charge.We have,
1 Horsepower = 0.7457 KW
100 HP = 0.7457 X 100 = 74.57 KW
The required input power at 92% efficiency = 74.57/92% = 81.05 KW.
The demand charge per KW per year = 81.05 x 92 = $ 7,456.60
The present worth of demand charge = 7,456.60 x PVIFA(15%,10 years) = 7,456.60 x 5.02 = $ 37,432
Step2: Computation of the present worth of energy charge.We have,
The required total KWH per year = 81.05 x 8,760 = 709,998 KWH / year
Energy cost per year = 709,998 x 0.008 = $ 56,799.84
The present worth of energy cost = 56,799.84 x PVIFA(15%,10 year) = 56,799.84 x 5.02 = $ 285,135
Step3: Computation of the present worth of motor over a 10-year period.We have,
Present worth of mot0r = Installation cost + PW of demand charge + PW of energy cost
Present worth of motor= 4,000 +37,432 + 285,135 = $ 326,567
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