8. 28.

Equivalent annual cost [LO 10.4] Light-emitting diode (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.45 and lasts for 1000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lasts for 40 000 hours. A kilowatt-hour of electricity costs $0.121, which is about the national average. A kilowatt-hour is 1 000 watts for 1 hour. If you require a 10 per cent return and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb?