a. Determine whether it is advantageous to use compact fluorescent bulbs instead

Question

a. Determine whether it is advantageous to use compact fluorescent bulbs instead of conventional incandescent light bulbs by comparing levelized annual expenditures, $/yr, over an appropriate time horizon, for bulbs having equivalent light output and the following characteristics: Other data: Use rate: 1,000 hrs/yr, Interest (discount) rate: 7%/yr (continuous), Cost of electricity: 10d/kwh (today, time-zero), Interest (discount) rate: 7%/yr (continuous). b. List other major consumer-sector examples of items where inexpensive initial cost dominates purchasing decisions even though future continuing expenditures are actually high enough to justify behaving otherwise. c. Briefly discuss any aspects not included in the above analysis that should be taken into account in a complete life-cycle analysis.

Explanation / Answer

a. As in the given condition, we have Fluorescent bulb along with the Incandescent bulb when we consider the electricity cost by using it at 1000 hr/yr we draw this result:
power consumed after using it 1000 hrs /yr,
Fluoresce: 26 x1000 W/yr=26 kW/yr
Incandescent: 100 x1000 W/yr = 100 kW/yr
So now converting it into the commercial unit by multiplying with the cost of electricity we get this result:
Fluoresce: 26 x $ 0.10 = $ 2.6
Incandescent: 100 x $ 0.10 = $ 10
Not only this we have to replace the Incandescent bulb on a yearly basis so we need to add extra $2 our bill, so ultimately it’s clear on the long run Fluorescent is more economical as compared to that of the Incandescent bulb.

b. From the above example, it’s clear that when comes to the purchasing decisions consumer most of the time prefer to go with the price tag part rather than considering about the long term cost implication. This is mainly caused by the purchasing power of that individual this will dominate most of the time in making any purchasing decisions.
c. In the above example, the environmental impact is not being considered whereas in any life-cycle analysis impact analysis and impact measurement is also the great way to measure its impact on the environment in order to have improvement in the product. As in this the sources from where the raw material is coming and about the impact on the environment is missing and at the end of the life of the product how this is being treated in the environment is also a major aspect which is missing in the above analysis.

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