Make sense to replace incandescent bulbs today

Assignment Help Financial Management

Reference no: EM132017388

Compact fluorescent lamps (CFLs) have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $.55 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.90 and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1 hour. Suppose you have a residence with a lot of incandescent bulbs that are used on average 500 hours a year. The average bulb will be about halfway through its life, so it will have 500 hours remaining (and you can’t tell which bulbs are older or newer).

If you require a 11 percent return, at what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.)

Break-even cost $

Reference no: EM132017388

Questions Cloud

Complete the scales of measurement worksheet : Complete the Scales of Measurement Worksheet. Submit a copy of the survey, and its scoring algorithm, you plan to use or potentially could use.

Assess the immediate staffing needs at bnh : The administrator recently terminated the facility's Director of Nursing (DON), receptionist, and dietary aid for inappropriate conduct.

Conceived view of the present value model : Why is this an ill-conceived view of the present value model?

What is the implied growth rate : If the current dividend is 10% per annum, what is the implied growth rate?

Make sense to replace incandescent bulbs today : If you require a 11 percent return, at what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today?

How the company should have handled the hiring process : Write a 700- to 1,050-word paper discussing the errors made by the hiring company and how the company should have handled the hiring process.

Lenders come before those of common stockholders : Claims for lenders come before those of common stockholders.

Restructuring activities an integrated approach to process : In Mergers, Acquisitions, and Other Restructuring Activities An Integrated Approach to Process, Tools,

Calculate the eac for each machine : Calculate the EAC for each machine.

User Account

All Pages