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 $1.90 each will provide the same illumination as standard 60-Watt ILBS costing $0.55 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 $2.90, 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 15% 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. Click the icon to view the interest and annuity table for discrete compounding when i = 15% per year. The PW of installing ILBs is $ (Round to the nearest dollar.) More Info Single Payment Compound Amount Present Factor Worth Factor To Find F To Find P Discrete Compounding; i=15% Compound Amount Factor To Find F Uniform Series Sinking Capital Present Worth Factor Fund Factor Recovery To Find P Given P Given F Given A Given A Given F To Find A Factor To Find A Given P N F/P P/F F/A P/A A/F A/P 1 1.1500 0.8696 1.0000 0.8696 1.0000 1.1500 23 2 1.3225 0.7561 2.1500 1.6257 0.4651 0.6151 3 1.5209 0.6575 3.4725 2.2832 0.2880 0.4380 4 1.7490 0.5718 4.9934 2.8550 0.2003 0.3503 5 2.0114 0.4972 6.7424 3.3522 0.1483 0.2983 69 2.3131 0.4323 8.7537 3.7845 0.1142 0.2642 7 2.6600 0.3759 11.0668 4.1604 0.0904 0.2404 8 3.0590 0.3269 13.7268 4.4873 0.0729 0.2229 9 3.5179 0.2843 16.7858 4.7716 0.0596 0.2096 10 4.0456 0.2472 20.3037 5.0188 0.0493 0.1993 11 4.6524 0.2149 24.3493 5.2337 0.0411 0.1911 2315 5.3503 0.1869 29.0017 5.4206 0.0345 0.1845 6.1528 0.1625 34.3519 5.5831 0.0291 0.1791 14 7.0757 0.1413 40.5047 5.7245 0.0247 0.1747 8.1371 0.1229 47.5804 5.8474 0.0210 0.1710 -