15 ### Lightbulb Cost Analysis for Industrial Application**Context:** A plant engineer wishes to determine which of two types of lightbulbs should be used to light the workspace. The bulbs that are currently used cost $43.00 per bulb and last 14,600 hours before burning out. The new bulb (priced at $82.9 per bulb) provides the same amount of light and consumes the same amount of energy but lasts twice as long. The labor cost to change a bulb is $17.00. The lights are on for 19 hours a day, 365 days a year. Assume that the firm's marginal tax rate is 25%. If the firm's Minimum Attractive Rate of Return (MARR) is 18%, what is the maximum price (per bulb) the engineer should be willing to pay to switch to the new bulb? Round the service life of the old bulb to the nearest whole number.**Instructions:** 1. **Evaluate Cost Factors**: Consider both initial costs and long-term savings associated with reduced replacement frequency. 2. **Tax and Depreciation**: Factor in the company's marginal tax rate (25%). 3. **Time Value of Money**: Use the MARR of 18% to determine the present worth of future savings. 4. **Operational Details**: Lights operate for 19 hours a day all year round (365 days).**Calculation Step-by-Step**: To find the maximum price per new bulb that the engineer should be willing to pay, use the present worth (PW) of the cost savings due to the longer lifespan of the new bulb. Evaluate this using the provided MARR.#### Financial Overview Table| **Factor/Years (N)** | **1** | **2** | **3** | **4** | **5** | **6** | **7** | **8** | **9** | **10** ||:--------------------:|:----------:|:----------:|:----------:|:----------:|:----------:|:----------:|:----------:|:----------:|:----------:|:----------:|| **Single Payment** | | | | | | | | | | || **Compound Amount** | 1.1800 | 1.3924 | 1.6434

The Minimum Acceptable Rate of Return (MARR) is the rate of return that a company uses to compare…

A plant engineer wishes to know which of two types of lightbulbs should be used to light a warehouse. The bulbs that are currently used cost $43.00 per bulb and last 14,800 hours before burning out. The new bulb (at $82.9 per bulb) provides the same amount of light and consumes the same amount of energy, but it lasts twice as long. The labor cost to change a bulb is $17.00. The lights are on 19 hours a day, 365 days a year. (Assume that the firm's marginal tax rate is 25%) If the firm's MARR is 18%, what is the maximum price (per bulb) the engineer should be willing to pay to switch to the new bulb? Round the service life of the old bulb to the nearest whole number. Click the icon to view the interest factors for discrete compounding when i=18% per year. The maximum price per new bulb the engineer should be willing to pay is $- (Round to one decimal place.) X More Info Single Payment Equal Payment Series Present Compound Amount Factor Sinking Fund Factor Worth Factor Capital Recovery Factor (A/P, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) 1.0000 1.0000 0.8475 1.1800 2.1800 0.4587 1.5658 0.6387 212 N 2 Compound Amount Factor (FP, i, N) 1.1800 1.3924 Present Worth Factor (P/F, i, N) 0.8475 0.7182

A plant engineer wishes to know which of two types of lightbulbs should be used to light a warehouse. The bulbs that are currently used cost $43.00 per bulb and last 14,800 hours before burning out. The new bulb (at $82.9 per bulb) provides the same amount of light and consumes the same amount of energy, but it lasts twice as long. The labor cost to change a bulb is $17.00. The lights are on 19 hours a day, 365 days a year. (Assume that the firm's marginal tax rate is 25%) If the firm's MARR is 18%, what is the maximum price (per bulb) the engineer should be willing to pay to switch to the new bulb? Round the service life of the old bulb to the nearest whole number. Click the icon to view the interest factors for discrete compounding when i=18% per year. The maximum price per new bulb the engineer should be willing to pay is $- (Round to one decimal place.) X More Info Single Payment Equal Payment Series Present Compound Amount Factor Sinking Fund Factor Worth Factor Capital Recovery Factor (A/P, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) 1.0000 1.0000 0.8475 1.1800 2.1800 0.4587 1.5658 0.6387 212 N 2 Compound Amount Factor (FP, i, N) 1.1800 1.3924 Present Worth Factor (P/F, i, N) 0.8475 0.7182

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

$ per unit 100.00- 90.00- 80.00 70.00- -00 09 50.00- 40.00- 30.00- 20.00- 10.00- 0 10 20 30 MR 40 50 Quantity OK 09 70 MC=ATC D 09 90 100
Discussing the working of Multipier explain its leakages
ctors) on of es 1. Relationship of data usage and bill Data Usage(GB/month) 0 10 20 30 Bill($/month) 10 30 50 70 A. Draw the graph, placing data usage horizontally(on the X axis) and bill vertically(On the Y axis). B. How much is the monthly fixed fee? C. How much is the charge per GB? D. What is the Equation that describes the relationship, where data usage is denoted by D, and bill by B? E. How much would be the charge for 50 GB use per month?
What is the Consumer Price Index (CPI)? What is the difference between commodity-specific and composite price indexes? Can each be used in engineering economic analysis?
There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. Assume the bar owner has the right to hire as many bands as she likes. Iftransaction costs were $90, split between the bar owner and the tenants, how manybands would play? What would social welfare be? A. Three bands would play and social welfare would be ‐100.B. Two bands would play and social welfare would be 75.C. Two bands would play and social welfare would be ‐15.D. No bands would play and social welfare would be 0.E. Three bands would play and social welfare would be ‐190
F) Which movement could be caused by an increase in the wages of workers in the apple orchard * O A to C O B to D H to A O A to E Answer not given
Please no written by hand and no emage
1.A property costs $1,000 today. If it is apreciating at a rate of 5%, calculate its price in 5 years.
Output TFC 0 $500 2 500 4 CO 00 6 8 10 500 500 500 500 TVC $0 200 340 590 1000 1650 TC $500 700 840 1090 1500 2150
Solve the attachment.
please fill out a-n
Businesses that offer repayment plans for purchases are required by law to disclose the interest rate. But that dosent mean they let you go out of there way to let you know what it is. you have to read all the paper work. Find the interest rate for the follwing purchase. For a 312 square- foot family room, you choose carpert that costs $1.44 per square foot. The tax rate is 6.1% and youre offered 24 payemnts of 27.61. Round to one decimal, if necessary.