Light emitting diode (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.41 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.20 and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1 hour. Suppose you have a residence with a lot of incandescent bulbs that are used on average 500 hours a year. The average bulb will be about halfway through its life, so it will have 500 hours remaining (and you can’t tell which bulbs are older or newer). If you require a return of 9 percent, at what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.

Light emitting diode (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.41 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.20 and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1 hour. Suppose you have a residence with a lot of incandescent bulbs that are used on average 500 hours a year. The average bulb will be about halfway through its life, so it will have 500 hours remaining (and you can’t tell which bulbs are older or newer). If you require a return of 9 percent, at what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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Light emitting diode (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.50 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.65 and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1 hour. Suppose you have a residence with a lot of incandescent bulbs that are used on average 500 hours a year. The average bulb will be about halfway through its life, so it will have 500 hours remaining (and you can't tell which bulbs are older or newer). If you require a return of 9 percent, at what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) Break-even cost
It’s time to get a new laptop that is $2500. If you save up for it each month it will take one year in an account that earns 5% annual interest. (A)How much would you have to put aside each month to have enough for it? (B)What are the total acquisition costs of saving up for the laptop? answer it using the annualize percentage change formula
A process has a cycle time of 10 minutes. The throughput time is 10 hours. If the throughput time is reduced to 5 hours without changing the cycle time, what is the change in inventory (as a percentage)?
Cindy and Steven are recently married and are both chefs. They have recently graduated from culinary school and are making a starting salary of $15.00 as a sous-chef. They both work 10 hour days, six days a week. Because they are chefs at a mid- level restaurant they live in the downtown core where it is located. The rent on their one bedroom apartment is $1125/month. This includes all utilities. However, they pay an additional $75 for cable and internet. Their joint cell phone bill is $60.00 and they opt not to have a landline to save money. Because they live downtown they have also chosen not to buy a car and spend about $200 a month on public transportation. They eat most meals for free at the restaurant where they work so their grocer bill is only about $200 a month. Do Cindy and Steven earn enough money to cover their expenses
[Use Excel] You are planning to buy a new car before you move to a new place for a job after graduation. You are given two options. The first one is the Toyota Prius which has an initial cost of $25,000 with miles per gallon (MPG) of 50. The second option is a regular sedan car with an initial cost of $18,000 and an MPG of 25. If the gasoline price is $ 4.50/gallon, the annual effective interest rate is 8%, beyond which annual mileage of the car you will choose Prius over the regular car. The car is supposed to stay for 10 years. [Round the final answer to an integer by round(answer,0) command]
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,867 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,427 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,251. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,938 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,473 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,139. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%? Enter your answer as follow: 123456
Brian lives in San Diego and runs a business that sells guitars. In an average year, he receives $733,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $433,000; he also pays wages and utility bills totaling $257,000. He ovwns his showroom; if he chooses to rent it out, he vill receive $13,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Brian does not operate this guitar business, he can vork as a paralegal, receive an annual salary of $23,000 vith no additional monetary costs, and rent out his showroom at the $13,000 per year rate. No other costs are incurred in running this guitar business. Identify each of Brian's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The vholesale cost for the guitars that Brian pays the manufacturer The salary Brian could earn if he worked as a paralegal The vages and utility…
1. You purchased a building five years ago for $100,000. Its annual maintenance expense has been $5,000 per year. At the end of three years, you spent $9,000 on roof repairs. At the end of five years (now), you sell the building for $120,000. During the period of ownership, you rented the building for $10,000 per year paid at the beginning of each year. Use the AW method to evaluate this investment when your MARR is 12% per year.
How do you get from step 3 to step 4 - (-11)/5
No excel, full work thanks
“The higher the MARR, the higher the price that a company should be willing to pay for equipment that reduces annual operating expenses.” Do you agree with this statement? Explain your answer.