What is the equivalent annual cost of each lightbulb

Assignment Help Financial Management

Reference no: EM131896524

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $0.45 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.40 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $0.121, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 10% return and use a light fixture 500 hours per year, what is the equivalent annual cost of each lightbulb?

Reference no: EM131896524

Questions Cloud

Assume projects have the same cost and the discount rate : Which project do you invest in, A or B? Assume projects have the same cost and the discount rate is 10%.

Your money will triple in value in single year : What is the approximate probability that your money will triple in value in a single year?

What is after-tax cost of debt : Tiny Tots has debt outstanding, currently selling for $880 per bond. Par is $1,000 and the firm's tax rate is 40%. What is the after-tax cost of debt?

Sub-sector of the high-tech industry the firm resides : Due to the nature of the sub-sector of the high-tech industry the firm resides in, the company concentrates its efforts on producing a single product to keep fo

What is the equivalent annual cost of each lightbulb : If you require a 10% return and use a light fixture 500 hours per year, what is the equivalent annual cost of each lightbulb?

Charge the government to break even : How much would the corporation have to charge the government to break even if rates must remain constant forever?

Compute the total marcs depreciation of the hotel : If the hotel is sold on June 10, 2020, compute the total MARCS depreciation of the hotel.

Make sharon indifferent between the new and old leases : What new lease payment would make Sharon indifferent between the new and old leases?

What is the level of operating cash flows each year : What is the level ($ amount) of operating cash flows each year if the project has a NPV of $10 million?

User Account

All Pages