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Problem 1 0 - 2 9 Break - Even Cost [ LO 2 ] Light emitting diode ( LEDs ) light bulbs have become required

Problem 10-29 Break-Even Cost [LO2]
Light emitting diode (LEDs) light bulbs have become required in recent years, but do
they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.37
and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.00 and
lasts for 12,000 hours. A kilowatt hour of electricity costs $.113. A kilowatt-hour is 1,000
watts for 1 hour. However, electricity costs actually vary quite a bit depending on location
and user type. An industrial user in West Virginia might pay $.04 per kilowatt-hour
whereas a residential user in Hawaii might pay $.25. You require a return of 10
percent and use a light fixture 500 hours per year. What is the break-even cost per
kilowatt-hour? (Do not round intermediate calculations and round your answer to 6
decimal places, e.g.,32.161616.)
Break-even cost
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