Determine if a DC motor should be repaired upon failure or discarded and replaced. The unit cost of the motor is $275. If repaired, $5000 in repair equipment would be needed and it would require a...

Determine if a DC motor should be repaired upon failure or discarded and replaced. The unit cost of the motor is $275. If repaired, $5000 in repair equipment would be needed and it would require a technician 4 hours at a rate of $401hr to repair a failure. Ten percent of failures could not be repaired and must be condemned. If discarded, an investment of $500 would be required to fill initially the spares pipeline. It would take a single technician 30 minutes to replace the failed unit at the rate of $40 an hour. The motor has an intensity function with a = .5 years and b = 2.5 and a design life of 7 years.