Light-emitting diode (LED) light bulbs have become required in recent years, but do theymake financial sense? Suppose a typical 60-watt incandescent light bulb costs $.45 andlasts for 1,000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lastsfor 40,000 hours. A kilowatt-hour of electricity costs $.121, which is about the nationalaverage. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 10 percent return anduse a light fixture 500 hours per year, what is the equivalent annual cost of each lightbulb? (A negative answer should be indicated by a minus sign. Do not roundintermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)60-watt light bulbLED light bulbEquivalentannual cost

Answered: Image /qna-images/answer/f1e087a6-9d7c-4f97-9f12-f59a745c42c9.jpg

Answered: Light-emitting diode (LED) light bulbs…

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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Light emitting diodes (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 1,000 hours. A 15-watt LED, which provides the same light, costs $3.20 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $.117. A kilowatt-hour is 1,000 watts for 1 hour. If you require a return of 9 percent and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 60-watt incandescent light bulb LED light bulb $ $ 3.74 x 1.21
Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.55 and lasts 1,000 hours. A 15-watt LED, which provides the same light, costs $3.90 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $.131. A kilowatt-hour is 1,000 watts for 1 hour. If you require a return of 11 percent and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt Incandescent light bulb costs $.43 and lasts 1,000 hours. A 15-watt LED, which provides the same light, costs $3.30 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $.119. A kilowatt-hour is 1,000 watts for 1 hour. If you require a return of 10 percent and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. S 4.21 $ 0.56 60-watt incandescent light bulb LED light bulb
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 $.48 and lasts for 1, 000 hours. A 15 watt LED, which provides the same light, costs $3.55 and lasts for 12, 000 hours. A kilowatt hour of electricity costs $.124. 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 10 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.)
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 $.51 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.70 and lasts for 12,000 hours. A kilowatt hour of electricity costs $.127. 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 10 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.)
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 $.35 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $2.90 and lasts for 12,000 hours. A kilowatt hour of electricity costs $.111. 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
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 $.38 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.05 and lasts for 12,000 hours. A kilowatt hour of electricity costs $.114. 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
In southern California a photovoltaic (PV) system for a certain home costs $28,000 for parts and installation. This 6.1 kW system requires 350 ft of rooftop space and has an estimated life of 20 years. a. If this PV system saves $200 each month in electricity expenses, what is the simple payback period in months? b. If the market value of the PV system is negligible, what is the system's IRR? a. The simple payback period for the PV system is months. (Round to the nearest whole number.)
A computer call center is going to replace all of its incandescent lamps with more energy-efficient fluorescent lighting fixtures. The total energy savings are estimated to be $1,875 per year, and the cost of purchasing and installing the fluorescent fixtures is $4,900. The study period is five years, and terminal market values for the fixtures are negligible. Solve, a. What is the IRR of this investment? b. What is the simple payback period of the investment? c. Is there a conflict in the answers to Parts (a) and (b)?List your assumptions. d. The simple payback “rate of return” is 1/θ. How close does this metric come to matching your answer in Part (a)?
A computer call center is going to replace all of its incandescent lamps with more energy-efficient fluorescent lighting fixtures. The total energy saving are estimated to be $2,033 per year, and the cost of purchasing and installing the fluorescent fixtures is $5,400. The study period is five years, and terminal market values for the fixtures are negligible. a. What is the IRR of this investment? b. What is the simple payback period of the investment? c. Is there a conflict in the answers Parts (a) and (b)? List your assumptions. d. The simple payback "rate of return" is 1/θ. How close does this metric come to matching your answer in Part(a)?
A computer call center is going to replace all of its incandescent lamps with more energy efficient fluorescent lighting fixtures. The total energy savings are estimated to be $2,084 per year, and the cost of purchasing and installing the fluorescent fixtures is $4,500. The study period is four years, and terminal market values for the fixtures are negligible. a. What is the IRR of this investment? b. What is the simple payback period of the investment? c. Is there a conflict in the answers to Parts (a) and (b)? List your assumptions. d. The simple payback "rate of return" is 1/0. a. The IRR of the investment is%. (Round to one decimal place.) b. The simple payback period of the investment is years. (Round up to the next whole number.) c. Select all the correct assumptions below. A. The value of 0 may indicate a poor project in terms of liquidity. B. The value of 0 may indicate the best project in terms of liquidity. C. The IRR will signal an acceptable (profitable) project if the MARR…
A computer call center is going to replace all of its incandescent lamps with more energy efficient fluorescent lighting fixtures. The total energy savings are estimated to be $1,875 per year, and the cost of purchasing and installing the fluorescent fixtures is $4,900. The study period is five years, and terminal values for the fixtures are negligible.a. What is the IRR of this investment?b. What is the simple payback period of the investment?

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