What is the equivalent annual cost of light bulb

Assignment Help Business Economics
Reference no: EM132410904

LED bulbs have become more popular in recent years, but do they make financial sense? Suppose a typical 15-watt fluorescent light bulb costs $20 and lasts 12,000 hours. A 8-watt LED bulb, which provides the same light, costs $32 and lasts for 20,000 hours. A kilowatt-hour of electricity costs $0.8. A kilowatt-hour is 1000 watts for 1 hour. If you require a 10 percent return and use a light fixture 1000 hours per year, what is the equivalent annual cost of each light bulb? Which light bulb should you use?

Reference no: EM132410904

Questions Cloud

Business application of purchasing power parity : Flame Fixtures, Inc. is a small U.S. business in Arizona that produces and sells lamp ?xtures. Its costs and revenues have been very stable over time.
Repurchase outstanding shares and cost of equity : What will the value be if it borrows $100,000 and repurchase the outstanding shares and the cost of equity, WACC after recapitalization?
What is the company wacc : The first bond has a YTM of 7.8%, the second bond has a YTM of 7.1%. The tax rate is 35%. What is the company's WACC?
What is the sensitivity of npv to changes in unit sales : Creative Inc. believes sales price, unit sales, variable cost, and fixed cost projections are accurate to within ±20 percent. What are the base-case, worst-case
What is the equivalent annual cost of light bulb : LED bulbs have become more popular in recent years, but do they make financial sense? Suppose a typical 15-watt fluorescent light bulb costs $20
Should the company undertake the project : The press also requires an initial investment in inventory of $30,000, and the level of inventory increases by $2,000 every year.
What is the marginal rate of tax on remitted profits : If the U.S. parent has surplus foreign tax credits, what is the marginal rate of tax on remitted profits from the subsidiary?
Compensation in the event of expropriation : Suppose a firm projects cash flows of $2.5 million, $3 million, and $4 million for years 1, 2, and 3, respectively, on an initial investment in Ecuador of $22
Describe the association of southeast asian nations : The Client will benefit from trading with other countries in the region. Briefly describe the Association of Southeast Asian Nations (ASEAN)

Reviews

Write a Review

Business Economics Questions & Answers

  What is price per square foot of housing 5 miles from center

Consider a homocentric city where the cost of commuting is $20 per mile per month. A household located 5 miles from the city center lives in a 1,000 square foot house that costs it $500 per month. Non-land costs per house are $100 per month and there..

  Legitimate appearance requirements

How might seemingly legitimate appearance requirements result in illegal discrimination? Explain. What should employers do to reduce the likelihood

  Apply risk methodologies to economic situations

Int'l Expansion Considerations - Apply risk methodologies to economic situations using a variety of approaches ranging from basic statistics to certain

  Replenishment system illustrates a tactical utilize

Do recent economics actions justify greater regulation in the financial services industry Wall Marts continuous replenishment system illustrates a tactical utilize of information services.

  Major cause of higher doctor bills

How much does it cost to practice medicine? Are malpractice insurance premiums a major cause of higher doctor bills? Is medical care sold like other goods and services?

  What is the definition of demand for money

What is meant by an open market purchase? It is the purchase of goods and services by the federal government in open markets. Even though this does not happen often, if the Fed reduces the required reserve ratio, the supply of money will increase. Wh..

  Advantage of consumers with unfair pricing policies

Public policy toward monopolies Suppose that the government is concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. The government views electricity as a public good that is likely to be produced i..

  What is the cost to lavaland of moving from point e

What is the cost to Lavaland of moving from point E to point F. Illustrate what general economic principle is being illustrated.

  Determining factor of its ethical worth

When considering the consequences of an action to be the determining factor of its ethical worth, you are employing what type of ethical reasoning?

  How much of the second payment goes to pay interest

Upon graduation, Jeffrey Feldhusen borrows $16,800 to finance a late model used car. The loan is made by a family member who wishes to have equal annual payments at 10 % over 4 years. How much are the annual payments? How many total dollars of intere..

  Illustrate what is your maximum possible gain

You short-sell 200 shares of Tuckerton Trading Co., now selling for $50 per share. Illustrate what is your maximum possible gain ignoring transactions cost.

  Confidence interval estimate for the true proportion

Construct a 95% confidence interval estimate for the true proportion of Green Bay residents who use a smart phone.

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