# 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**