A design engineer has to select a 100 hp motor for a plant that operates 2000 hours in year. Model A-90 costs Rs.2,00,000 and has a full load efficiency of 89.5%. Model A-91 costs Rs.2,40,000 and has a full load efficiency of 91%.
Energy costs Rs. 2 per KWH. (0.746 KW = 1 hp).
The life of the motors are expected to be 12 years and the salvage value will be 5%. Which motor is to be specified by the design engineer?
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