Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The city of Metropolis is considering replacing incandescent bulbs in traffic lights with light-emitting diode (LED) lights because they use significantly less energy and last

The city of Metropolis is considering replacing incandescent bulbs in traffic lights with light-emitting diode (LED) lights because they use significantly less energy and last much longer without abrupt failure. Currently Metropolis has 80,000 incandescent bulbs in traffic lights at approximately 12,000 intersections. It is estimated that replacing all the incandescent bulbs with LED will cost $46.02 million. However, the investment is also estimated to save the city $8.85 million per year in energy costs. Answer the following questions on a Word Doc or Excel Spreadsheet :

1- Determine the payback period of converting Metropoliss traffic lights to LEDs.

2- If the average life of an incandescent traffic light is one year and the average life of an LED traffic light is seven years, should the city finance the investment in LEDs at an interest rate of 5% per year? Support your answer by showing calculations or copying and pasting your spreadsheet.

3- Assume the project manager for the city of Metropolis asked you to provide justific2- ation for the project. Write a brief email to the project manager describing why or why not Metropolis should invest in LED lights using the support figures you calculated for #2.

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

Maintenance Audits Handbook A Performance Measurement Framework

Authors: Diego Galar Pascual, Uday Kumar

1st Edition

1466583916, 978-1466583917

More Books

Students also viewed these Accounting questions

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is human nature?

Answered: 1 week ago