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Your boss has asked you to evaluate the economics of replacing 1,000 60-Watt incandescent light bulbs (ILBs) with 1,000 compact fluorescent lamps (CFLs) for a

Your boss has asked you to evaluate the economics of replacing 1,000 60-Watt incandescent light bulbs (ILBs) with 1,000 compact fluorescent lamps (CFLs) for a particular lighting application. During your investigation you discover that 13-Watt CFLs costing $2.10 each will provide the same illumination as standard 60-Watt ILBs costing $0.45 each. Interestingly, CFLs last, on average, eight times as long as incandescent bulbs. The average life of an ILB is one year over the anticipated usage of 1,000 hours each year. Each incandescent bulb costs $2.00 to install/replace. Installation of a single CFL costs $3.10, and it will also be used 1,000 hours per year. Electricity costs $0.13 per kiloWatt hour (kWh), and you decide to compare the two lighting options over an 8-year study period. If the MARR is 12% per year, compare the economics of the two alternatives and write a brief report of your findings for the boss. Assume that both installation cost and cost of the bulbs occur at the beginning of each year and that the electricity expense is incurred at the end of each year for eight years.

the interest and annuity table for discrete compounding when iequals=12% per year.

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The PW of installing ILBs is $........ (Round to the nearest dollar.)

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10 11 ISCrete Single Payment Compound Amount Present Factor Worth Factor To Find F To Find P Given F Given P F/P P/F 1.1200 0.8929 0.7972 1.2544. 1.4049 0.7118 1.5735 0.6355 1.7623 0.5674 1.9738 0.5066 0.4523 2.4760 0.4039 3.1058 0.3220 0.2875 3.4785 3.8960 0.2567 ompounding I Uniform Series Compound Sinking Capital Amount Present Fund Recovery Factor Worth Factory Factor Factor To Find F To Find P To Find A To Find A Given A Given A Given F Given P FIA PIA 1.0000 0.8929 1.0000 1.1200 2.1200 1.6901 0.4717 0.5917 3.3744 0.2963 2.4018 0.4163 4.7793 3.0373 0.2092 0.3292 6.3528 0.2774 3.6048 0.1574 0.2432 8.1152 4.1 114 0.1232 10.0890 12.2997 0.2013 4.9676 14.7757 5.3282 0.0570 17.5487 5.6502 0.1770 20.6546 5.9377 0.0484 0.1684. 0.0414 24.1331 6.1944. 0.1614

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