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Betsy Yordy, the new assistant manager of a hotel in Tucson, Arizona, has been asked to determine the consumption and replacement cost of the 450
Betsy Yordy, the new assistant manager of a hotel in Tucson, Arizona, has been asked to determine the consumption and replacement cost of the 450 75-watt incandescent light bulbs currently in use in the hotel guestroom hallways with compact fluorescent light bulbs. The internal corridors require that the light bulbs are switched on 24 hours a day. The current average cost of each kilowatt-hour paid by the property is $0.09331. If the cost of one fluorescent light bulb is $1.90 and its wattage is 60, how many days will be necessary to amortize the purchase of the new light bulbs from the savings obtained by lowering the bulbs wattage? Betsy is not considering the cost of replacing the light bulbs or the effect of the life of both bulb types
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