Perform a breakeven analysis to find out at what hours of


There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,400 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,000 and has an efficiency of 90%, life of 10 years and maintenance cost of $25/year. Assume that the company internal rate of return is 15%. Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same. Assume an electricity rate of $0.05 per kilowatt hour. Please plot your results.

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Financial Management: Perform a breakeven analysis to find out at what hours of
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