A motor $10,000 is used for group in a certain installation. How will its total annual cost compare with the case where four individual motors each costing $4000 were used. With group drive, the energy consumption is 50kwh whereas it is 45kwh for individual drive. the cost of electric energy is 20k/kwh. Assume depreciation, maintenance and other fixed charges at 10% in the case of group drive and 15% in the case of individual drive. Solution: group drive Capital cost =$10000 Annual depreciation,maintenance and other fixed charges 10% of $10000=$1000 Annual cost of energy=$(50,000*0.2)=$10,000 Total annual cost=$(1000+10,000)=$11,000 Individual drive Capital cost=4*$4000=$16,000 Annual depreciation,maintenance and other fixed charges 15%of$16,000=#2400 Annual cost of energy=$(9000+2400)=$11400 did i get it?