Compact fluorescent lamps have become more popular

Assignment Help Financial Management
Reference no: EM131601590

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.46 and lasts 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.45 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $0.122, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 11 percent return and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.1 6))

60-watt incandescent light bulb $

Compact fluorescent lamps $

Reference no: EM131601590

Questions Cloud

Calculate the cross-rate in terms of yen per pound : Calculate whether a U.S. dollar (USD) or a Canadian dollar is worth more. Calculate the cross-rate in terms of yen per pound.
Interpret the statements about value at risk : Interpret the following statements about Value at Risk so that they can be understood by a nontechnical person:
Evaluating a project for ultimate recreational tennis racket : You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand.
What was allison holding period return : What was Allison's holding period return?
Compact fluorescent lamps have become more popular : Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense?
Understanding of financial concepts by completing problem : Demonstrate your understanding of financial concepts by completing the problems. Calculating the weighted average cost of capital (WACC)
Megaware case study : Megaware Incorporated is a technology firm that was founded eight years ago by John Thompson and Jill Dillman. Megaware manufactures various hardware components
What will be your retail margin for the new product : Distribution: What will be your Retail Margin for the new product and why is this appropriate?
The federal reserve can increase high powered money by : The Federal Reserve can increase high powered money by. Real Interest Rates are currently higher than nominal interest rates.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the required rate of return for global equity fund

Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio. The market's required rate of return is 13.75%, the risk-free rate is 4.95%, and the Fund's assets..

  The spot exchange rate and forward exchange rate

Suppose on July 1st, 2003, Porsche expected $1 million sales from the U.S. at the end of July. On July 1st, 2003, the spot exchange rate was $1.1362/€, the 30-day forward exchange rate was $1.1400/€, and the 60-day forward exchange rate was $1.1450/€..

  What is the annual opportunity cost of a checking account

What is the annual opportunity cost of a checking account that requires a $300 minimum balance to avoid service charges? Assume an interest rate of 3%.

  What is the cross-rate in terms of yen per pound

Suppose the Japanese yen exchange rate is ¥86.47 = $1, and the British pound exchange rate is £1 = $1.65. What is the cross-rate in terms of yen per pound? Suppose the cross-rate is ¥145 = £1. What is the arbitrage profit per dollar?

  What is the shareholder return

Brian Carty, a prominent investor, is evaluating investment alternatives. What is the shareholder return?

  Diversified by adding stocks to a portfolio

Which of the following risk types can be diversified by adding stocks to a portfolio?

  How much interest will you owe at end of first year

ssuming you transfer $12,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at end of first year.

  Millbridge earns four percent on its idle cash

Millbridge Hospital buys its supplies in bulk and has recently switched vendors. The first purchase Millbridge made was for 500 boxes of gauze at $3.46 a box. The purchase had payment terms of 2/15 N/30. Millbridge earns four percent on its idle cash..

  Compare the percentage gains and losses

Stock in Cheezy-Poofs Manufacturing is currently priced at $50 per share. A call option with a $50 strike and 90 days to maturity is quoted at $2.50. Compare the percentage gains and losses from a $12,500 investment in the stock versus the option in ..

  T-bond futures contracts call for delivery

You hold a $50 million portfolio of par value bonds with a coupon rate of 10% paid annually and 15 years to maturity. How many T-bond futures contracts do you need to hedge the portfolio against an unanticipated change in the interest rate of 0.18%? ..

  What was the bank of united states

What was the Bank of United States? When did it fail? Why did it fail?- Why might the Fed's failure to save the Bank of United States provide a rationale for the policy of "too big to fail"?

  What should current rate be on two-year treasury securities

One year treasury bills currently earn 5.35 percent. You expect that one year from now, one year treasury bill rates will increase to 5.50 percent. The liquidity premium on two-year securities is 170 percent. If the liquidity theory is correct, what ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd