1. Delmar Corporation is evaluating to replace it Metal Halide lighting system with Led lighting plantwide. LED lighting consumes less power and lasts longer than Metal Halide lamps for similar performance. Delmar has developed the following data in its evaluation:

Metal Halide watt hour consumption per fixture 500 watts per hour

LED watt hour consumption per hour 300 watts per hour

Number of fixtures 700

Lifetime investment cost (prevent value) to

replace each Metal Halide fixture with LED 500

Operating hours per day 10

Operating days per year 300

Metered utility rate per Kilowatt Hour 0.11

Determine the investment cost to replace the 700 fixtures

Determine the annual utility cost saving by employing LED lighting

Determine, based on a 15-year life, an 8% minimum rate of return, and using net present value method, whether the project should be accepted.