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 $.45 and lasts for 1,000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lasts for 40,000 hours. A kilowatt-hour of electricity costs $.121, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type (you can get information on your rates from your local power company). An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a 10 percent return and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour? (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
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 $.45 and lasts for 1,000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lasts for 40,000 hours. A kilowatt-hour of electricity costs $.121, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type (you can get information on your rates from your local power company). An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a 10 percent return and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour? (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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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 $.45 and
lasts for 1,000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lasts
for 40,000 hours. A kilowatt-hour of electricity costs $.121, which is about the national
average. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary
quite a bit depending on location and user type (you can get information on your rates
from your local power company). An industrial user in West Virginia might pay $.04 per
kilowatt-hour whereas a residential user in Hawaii might pay $.25.
You require a 10 percent return and use a light fixture 500 hours per year. What is the
break-even cost per kilowatt-hour? (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
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