Suppose you have just bought-a new house and are considering the installation of

Question

Suppose you have just bought-a new house and are considering the installation of 10 compact fluorescent bulb (CFB) fixtures instead of the 10 conventional incandescent lighting fixtures (which cost a total of $500) typically installed by the builder. According to the home builder, CFBs use 75% less electricity than incandescent bulbs, and they last 10 times longer before the bulb needs replacement. Bob calculates that 1,100 watts of incandescent lighting will be required in the house for 3,000 hours of usage per year. The cost of electricity is $0.11 per kWh. Also, each CFB will save 125 pounds of Co2 per year. Each pound of co2 has a penalty of $0.01. If incandescent bulbs cost $0.80 each and last for one year, use a 10-year study period to determine the maximum cost CFB fixtures and bulbs that can be justified in this house. MARR: 7% per year. Click the icon to view the interest and annuity table for discrete com pounding when i 7% per year. The maximum cost of the CFB fixtures and bulbs is Sper CFB. (Round to the nearest dollar.) dar 2 Enter your answer in the answer box.

Explanation / Answer

950

if this is the cost, it will cost same as the incandescent bulbs to be installed in a span of 10 years

Incandescent bulbs will require 1100 watts for 3000 hours usage per year CFB will use 75 % less electricity 275 watts for 3000 hours usage per year Incandescent bulbs CFB Yearly Saving 10 year Electricity cost 363 272.25 90.75 907.5 :=1100*0.11*3000/1000 :=1100*0.11*3000/1000*.25 CO2 Penalty 1250.1 1250.1 12501 TOTAL 1613.1 272.25 1340.85 13408.5 the max cost of the CFB should be as follows Cost of 10 bulb for 10 years 80 PV savings of CFB in 10 years 9418 total max cost of CFB 9498 no. of cfb to last for 10 years 10 as each can be used for 10 times longer MAX cost of CFB

950

if this is the cost, it will cost same as the incandescent bulbs to be installed in a span of 10 years

Savings pv of savings @ 7% Year 1 1340.85 1253.13084 Year 2 1340.85 1171.15032 Year 3 1340.85 1094.53301 Year 4 1340.85 1022.92805 Year 5 1340.85 956.007519 Year 6 1340.85 893.464971 Year 7 1340.85 835.013991 Year 8 1340.85 780.386908 Year 9 1340.85 729.333559 Year 10 1340.85 681.620148 9417.56931

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