Compact fluorescent lamps (CFLs) have become more popular in recent years, but d

Question

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.46 and lasts 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.45 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $0.122, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 11 percent return and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16))

Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $0.46 and lasts 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.45 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $0.122, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 11 percent return and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Calculation of Equivalent annual Cost

60-watt incandescent light bulb

Electricity cost = 0.122 * (500 * 60)/1000 = $3.66

Cost of bulb = .46/2 = .23

Total Equivalent annual Cost = $3.89

Compact Fluorescent lamps

Electricity Cost 0.122 * (500 * 15)/1000 = 0.915

Cost Of Bulb = 500/12000 * 3.45 = 0.144

Total Equivalent annual Cost = $ 1.06

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.