Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.51 and lasts 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.70 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $0.127, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 10 percent return and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational financial management

Authors: Alan c. Shapiro

10th edition

9781118801161, 1118572386, 1118801164, 978-1118572382

More Books

Students also viewed these Finance questions