Compact fluorescent bulb fixtures instead
Course:- Business Economics
Reference No.:- EM13837246

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Suppose you have just bought a new house and are considering the installation of 10 compact fluorescent bulb (CFB) fixtures instead of 10 conventional incandescent lighting fixtures (Which cost a total of $550) typically installed by the builder. According to the home builder, CFB's use 65% less electricity then the incandescent bulbs, and they last 10 times longer before the bulb needs replacement. Bob calculated that 1000 watts of incandescent lighting will be required in the house for 3250 hours of usage per year. The cost of electricity is $0.10 per kWh. Also, each CFB will save 125 pounds of CO2 per year. Each pound of CO2 has a penalty of $0.02. If incandescent bulbs cost $0.80 each and last for 1 year, use a 10 year study period to determine the maximum cost of CFB fixtures and bulbs that can be justified in his house. MARR= 7% per year.

a) The Maximum cost of the CFB fixtures and bulbs is $_ per CFB (round to the nearest dollar)

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