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A 20kW rated motor has an average loading of 75% of rated powerand has an efficiency of 80%. The motor has a peak loading of 100%of rated power. The motor operates 1000 hours a year. The cost ofelectricity is $0.10/kWh and $7/kW-month of demand. Assume themotor operates at periods of peak demand at the facility (i.e. themotor power impacts the billing demand). An energy efficiencyupgrade reduces the average power consumed to an average loading of50% of rated power and reduces the peak power to 75% of ratedpower, but increases the operating hours to 1500 hours per year.There is no change in the efficiency of the motor after theupgrade. The cost of the energy efficiency project is $10,000. Whatis the annual electricity cost of running the motor before andafter the energy efficiency upgrade? What is the simple payback ofthe project?