What is the present value of the cost savings from

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Question: A typical LED lightbulb costs $49.99 to purchase (in year 0) and $3.80 per year to operate (in years 0-9), and does not need to be replaced. A typical incandescent lightbulb costs $1.25 to purchase (in years 0-9), $29.20 per year to operate (in years 0-9), and needs to be replaced every year. If the appropriate annual discount rate is 4.0%, what is the present value of the cost savings from using the "cheaper" bulb to light your home in years 0-9?

Reference no: EM133380078

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