Question 10 of 10

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

Sergio039 [100]

Answer:

(A) For incandescent bulb, your break even cost is $32.67

(B) With LED bulb, your break even cost is $3.8115

Conclusion: It makes financial sense to use LED bulbs.

Explanation:

We start by checking the cost of your electricity bill when you use incandescent bulb and when you use LED bulb.

Since your answers are to be in kilowatt hour, we transform the watt measurement of the bulbs into kilowatt thus:

60watt incandescent bulb = 0.06kw

7watt led bulb = 0.007kw

National average cost of electricity per kilowatt hour is $1.21

Cost per kWh using incandescent bulb is 1.21 × 0.06 = $0.0726

Cost per kWh using led bulb is 1.21 × 0.007 = $0.00847

(A) WITH INCANDESCENT

0.06kw × 500hrs/year = 30kwhrs/year

Cost of electricity bill = 1.21 × 30 =$36.3

Your 10% return = $3.63

Break even cost per year, in kWh is = 36.3 - 3.63 = $32.67

(B) WITH LED

0.007kw × 500hrs/year = 3.5kwhrs/year

Cost of electricity bill = 1.21 × 3.5 = $4.235

Your 10% return = $0.4235

Break even cost per year in kWh is = 4.235 - 0.4235

(C) The incandescent bulb costs $0.45 but draws you a bill of $32.67 a year WHILE the led bulb costs $2.25 but draws you a bill of $3.8115

We conclude hence, that light-emitting diode bulbs make financial sense. Overlook the cost of purchasing the bulb because it uses less kilowatts per hour and draws you a very low bill, compared to the incandescent bulb!

5 0

3 years ago

On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $350,000 annually for 15 years beginning Mar

Levart [38]

Answer:

Answer for the question:

On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $350,000 annually for 15 years beginning March 31, 2022. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $3,187,770 lease liability. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

Determine the interest rate implicit in the lease agreement. (Do not round intermediate calculations.)

Is given in the attachment.

Explanation:

3 0

3 years ago

Piper Technology's fixed costs are $1,500,000, the unit selling price is $250, and the unit variable costs are $130. What is the

sweet-ann [11.9K]

Answer:

141,667 units

Explanation:

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

As such, the net operating income/loss is the difference between the sales and the total costs .

Let the amount of sales in units be y then,

250y - 130y - 1,500,000 = 200,000

120y = 1,700,000

y = 1700000/12

= 141,667 units

4 0

3 years ago

Suppose NoGro, Inc. has just issued a dividend of $2.90 per share. Subsequent dividends will remain at $2.90 indefinitely. Retur

ira [324]

Answer:

Value of one share will be $19.33

Explanation:

We have given dividend every year = $2.90

Required rate of return = 15 %

We have to find the value of one share

Value of one share will be equal to ratio of dividend per year to the required rate of return

So value of one share $=\frac{2.90}{0.15}=19.13$

So value of one share will be $19.33

5 0

3 years ago

Presented below is information related to Dino Radja Company.

Alja [10]

Answer:

Dino Radja Company

The ending inventory for Dino Radja Company for 2017 through 2022 using the dollar-value LIFO method:

Date Ending Inventory Price Dollar Value

(End-of-Year Prices) Index LIFO

December 31, 2017 $ 80,000 100 $80,000 ($80,000*1.00)

December 31, 2018 115,500 105 110,000 ($115,500/1.05)

December 31, 2019 108,000 120 90,000 ($108,000/1.20)

December 31, 2020 122,200 130 94,000 ($122,200/1.30)

December 31, 2021 154,000 140 110,000 ($154,000/1.40)

December 31, 2022 176,900 145 122,000 ($176,900/1.45)

Explanation:

a) Data and Calculations:

Date Ending Inventory Price Index

(End-of-Year Prices)

December 31, 2017 $ 80,000 100

December 31, 2018 115,500 105

December 31, 2019 108,000 120

December 31, 2020 122,200 130

December 31, 2021 154,000 140

December 31, 2022 176,900 145

5 0

2 years ago