Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.40 and lasts 1,000 hours. A 15-watt LED, which provides the same light, costs $3.15 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $.116. A kilowatt-hour is 1,000 watts for 1 hour. If you require a return of 10 percent and use a light fixture 500 hours per year,

what is the equivalent annual cost of each light bulb(

Light emitting diodes (LED) light bulbs and 60-watt incandescent light bulb)

?