Light emitting diode (LEDs) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.53 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.80 and lasts for 12,000 hours. A kilowatt hour of electricity costs $.129. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type. An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a return of 9 percent and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) Break-even cost
Light emitting diode (LEDs) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.53 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.80 and lasts for 12,000 hours. A kilowatt hour of electricity costs $.129. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type. An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a return of 9 percent and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) Break-even cost
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Light emitting diode (LEDs) light bulbs have become required in recent years, but do
they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.53
and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.80 and
lasts for 12,000 hours. A kilowatt hour of electricity costs $.129. A kilowatt-hour is 1,000
watts for 1 hour. However, electricity costs actually vary quite a bit depending on location
and user type. An industrial user in West Virginia might pay $.04 per kilowatt-hour
whereas a residential user in Hawaii might pay $.25. You require a return of 9
percent and use a light fixture 500 hours per year. What is the break-even cost per
kilowatt-hour? (Do not round intermediate calculations and round your answer to 6
decimal places, e.g., 32.161616.)
Break-even cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fb361e6-5d4e-4424-b3c9-e5e74484a85f%2Fa3c6d0dc-0c53-4011-a040-ebb0808094f3%2Ffdwnxp_processed.png&w=3840&q=75)
Transcribed Image Text:Light emitting diode (LEDs) light bulbs have become required in recent years, but do
they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.53
and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.80 and
lasts for 12,000 hours. A kilowatt hour of electricity costs $.129. A kilowatt-hour is 1,000
watts for 1 hour. However, electricity costs actually vary quite a bit depending on location
and user type. An industrial user in West Virginia might pay $.04 per kilowatt-hour
whereas a residential user in Hawaii might pay $.25. You require a return of 9
percent and use a light fixture 500 hours per year. What is the break-even cost per
kilowatt-hour? (Do not round intermediate calculations and round your answer to 6
decimal places, e.g., 32.161616.)
Break-even cost
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