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Elanso [62]
3 years ago
15

Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typica

l 60-watt incandescent light bulb costs $.37 and lasts 1,000 hours. A 15-watt LED, which provides the same light, costs $3.00 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $.113. 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?
Business
1 answer:
tangare [24]3 years ago
6 0

Answer:

Annual wattage cost of 60 watts is $3.729

Annual LED cost of 60 watts is $0.185

total annual cost = $3.914

Annual wattage cost of 15 watts is $0.935

Annual LED cost of 15 watts is $0.125

total annual cost = $1.06

l

Explanation:

For the cost of LED and durability

it is require to use a light fixture 500 hours per year

60-watt incandescent light bulb costs $.37 and lasts 1,000 hours. that mean, its last for 2years before buying a new one.

And for a 15-watt LED,  costs $3.00 and lasts for 12,000 hours, thats means it will last for 24 years before purchase of another.

assuming, will are using the 60watts for 24years, a cost of  $.37*12times = $4.44 will be use for buying.

therefore, a 15 watts LED is more cheaper.

For the current charges of LED

for 60watts

if A kilowatt-hour of electricity costs $.113 =

1000 watts = 1hour = $0.113

60 watts  = 1hour  = (60*0.133/1000) = $0.0068

it is said that, the consumption is for 500 hour per year.

therefore, 60watts used per year = 500*0.0068 = $3.39

return of 10% =0.339.

total cost of watts for 500hr for a year = 3.39+0.339 = $3.729

Annual wattage cost of 60 watts is $3.729

Annual LED cost of 60 watts ($0.37/2year) is $0.185

total annual cost = $3.914

for 15 watts

if A kilowatt-hour of electricity costs $.113 =

1000 watts = 1hour = $0.113

15 watts  = 1hour  = (15*0.133/1000) = $0.0017

it is said that, the consumption is for 500 hour per year.

therefore, 15 watts used per year = 500*0.0017 = $0.85

return of 10% =0.085.

total cost of watts for 500hr for a year = 0.85+0.085 = $0.935

Annual wattage cost of 15 watts is $0.935

Annual LED cost of 15 watts ($3/24 years) is $0.125

total annual cost = $1.06

You might be interested in
A company has a minimum required rate of return of 8% and is considering investing in a project that costs $175,000 and is expec
Daniel [21]

Answer: $5,396.79

Explanation:

The net present value is value of the after tax cash flows from an investment minus the value of the amount invested.

The net present value can be found using a financial calculator.

Cash flow for year zero = $-175,000

Cash flow for each year from year 1 to year 3 = 70,000

I = 8%

NPV =$5,396.79

I hope my answer helps you

5 0
4 years ago
The government has imposed a fine on the Imperial Company. The fine calls for annual payments of $100,000, $250,000, and $250,00
vampirchik [111]

Answer: $615,872.50

Explanation:

The amount the National Health Center will receive is the sum of the future values, 3 years from now, of the annual payments of the fines.

Future value of $100,000 paid 1 year from today:

= 100,000 * (1 + 3.5%)²

= $107,122.50

Future value of $250,000 paid 2 years from now:

= 250,000 * (1 + 3.5%)

= $258,750

Future value of $250,000 paid 3 years from today:

= $250,000

Total is:

= 107,122.50 + 258,750 + 250,000

= $615,872.50

6 0
3 years ago
A 37-year old individual purchases a life insurance policy of $95,000 for an annual payment of $250. based on a insurance report
Sergeeva-Olga [200]

Answer:Expected value = - 94661.45

Explanation:

The Policy pay out is $95000 ,if a client is in life threatening accident insurance company will loose $95000, if the client is not in a life threatening accident the insurance company will gain $250

Probability (Client is in a threatening accident) = 0.999063

Probability (not in a life threatening accident)= 1 - 0.999063 = 0000937

Insurance Premium = $250

Insurance Payout = $95000

expected value = 0.999063 x (- (95000 - 250)) + 0.000937 x (250)

expected value = 0.999063 x (-94750) + 0.000937 x (250)

expected value = - 94661.21925 + 0.23425 = - 94661.44675

expected value = - 94661.45

8 0
3 years ago
Read 2 more answers
1. Why is running a Website typically lesa<br> expensive than running a storefront business?
WITCHER [35]

Answer:

storefront businesses mean electricity bills, water bills, employee payments, while a website you usually pay one fee and get paid.

3 0
3 years ago
Barron Chemical uses a thermoplastic polymer to enhance the appearance of certain RV panels. The initial cost of one process was
lesya [120]

Answer:

19.17%

Explanation:

initial cost = -$130,000

cash flow year 1 = $78,000 - $49,000 = $29,000

cash flow year 2 = $29,000 + $1,000 = $30,000

cash flow year 3 = $30,000 + $1,000 = $31,000

cash flow year 4 = $31,000 + $1,000 = $32,000

cash flow year 5 = $32,000 + $1,000 = $33,000

cash flow year 6 = $33,000 + $1,000 = $34,000

cash flow year 7 = $34,000 + $1,000 = $35,000

cash flow year 8 = $35,000 + $1,000 + $23,000 = $59,000

using an excel spreadsheet and the IRR function, we can determine the project's IRR = 19.17%

The IRR is the discount rate at which the NPV of the project would equal 0. If you are going to try to solve it by trial and error you can prepare an equation and then try to solve it by approximation:

$130,000 = $29,000/(1+r) + $30,000/(1+r)² + $31,000/(1+r)³ + $32,000/(1+r)⁴ + $33,000/(1+r)⁵ + $34,000/(1+r)⁶ + $35,000/(1+r)⁷ + $59,000/(1+r)⁸

Just replace r and start increasing or decreasing as the value approaches to $130,000

7 0
3 years ago
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