Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $.48 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.55 and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1 hour. Suppose you have a residence with a lot of incandescent bulbs that are used on average 500 hours a year. The average bulb will be about halfway through its life, so it will have 500 hours remaining (and you cant tell which bulbs are older or newer). If you require a return of 10 percent, at what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today?

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

Finance A Quantitative Introduction

Authors: Nico Van Der Wijst

1st Edition

1107029228, 978-1107029224

More Books

Students also viewed these Finance questions

Question

b. Who is the program director?

Answered: 1 week ago

Question

=+7. What is the big message you want them to know? (THINK SLOGAN.)

Answered: 1 week ago