Light bulbs should be used to light a warehouse

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Reference no: EM132094079

A plant engineer wishes to know which of two types of light bulbs should be used to light a warehouse. The bulbs currently used cost $45.90 per bulb and last 14,600 hours before burning out. The new bulb ($60 per bulb) provides the same amount of light and consumes the same amount of energy but lasts twice as long. The labor costs to change a bulb is $16.00. The lights are on 19 hours a day, 365 days a year. If the firms MARR is 15% and it's marginal tax rate 40%, what is the break even price per bulb for the new bulb? Please show formulas, will rate. Thank you.

$64.60
$92.72
$120
$49

Reference no: EM132094079

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