Break-Even Replacement The previous two problems suggest that using CFLs is a good idea from a purely

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Break-Even Replacement The previous two problems suggest that using CFLs is a good idea from a purely financial perspective unless you live in an area where power is relatively inexpensive, but there is another wrinkle. Suppose you have a residence with a lot of incandescent bulbs that are used on average for 500 hours a year. The average bulb will be about halfway through its life, so it will have 500 hours remaining (and you can’t tell which bulbs are older or newer). At what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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