What is the total annual cost of a group drive with a motor costing Rs.18000 with that of 10 individual motors, each costing Rs. 5000.
What is the total annual cost of a group drive with a motor costing Rs.18000 with that of 10 individual motors, each costing Rs. 5000. The annual consumption is 80000 kWh. Electrical energy costs 20 paise per kWh. Depreciation, maintenance, and other fixed charges amount to 10 percent.
Right Answer is:
Rs. 17800
SOLUTION
⇒ The capital cost of group drive = Rs.18000
⇒ Annual Depreciation, maintenance, and other fixed charges = 10% i.e
10% of 18000 = 18000 × 10 ⁄ 100 = Rs. 1800
Energy consumption per annum = 80000 kWh
Annual energy charges = 0.20 × 80000 = Rs. 16000
Total annual cost of Group drive = Annual fixed charge + Annual energy charge
= 1800 + 16000 = Rs. 17800.00