Max demand charges = 100 kW 
Expenditure on phase advnacing equipement = Rs. 50.00 /kVAR/annnum 

(i) Most economical power factor at which factory should operate = 0.866 lag 

(ii)Capacity of phase advancing equipment = 34.53 kVAR 

(iii) Units consumed per year = 1000000 kWh 
Annual energy charges = Rs. 50000 
Annual cost of phase advancing equipment = Rs. 1726 
Max demand charges = Rs. 23094 
Annual bill for energy = Rs. 74821 

