Solved: The 1800-rpm, 150-hp motor of a compressor is

Chapter 7, Problem 7165

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The 1800-rpm, 150-hp motor of a compressor is burned out and is to be replaced by either a standard motor that has a full-load efficiency of 93.0 percent and costs $9031 or a high-efficiency motor that has an efficiency of 96.2 percent and costs $10,942. The compressor operates 4368 h/yr at full load, and its operation at part load is negligible. If the cost of electricity is $0.125/kWh, determine the amount of energy and money this facility will save by purchasing the high-efficiency motor instead of the standard motor. Also, determine if the savings from the high-efficiency motor justify the price differential if the expected life of the motor is 10 years. Ignore any possible rebates from the local power company.