Question

Light-emitting diode (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent bulb costs $.45 and lasts for 1,000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lasts for 40,000 hours. A kilowatt-hour of electricity costs $.121, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a 10 percent return and use a light fixture 500 hours per year, what is the equivalent annual cost of each lightbulb?

Answer 1

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I watt And are formula in un EACE-O- Coxil [I-(1+i)n . OeAnnual Operating costs Divine Cod Initicel investment i Interest Rate / Au court rate ora or All financials are in USD $ 60 CORTE particular incandescent B Unitial Investment.co. 0.45 a life chours) (P ] 1000 3. Consumptian (howe) per year (Q) 500 r. Life in yeard N = P1Q Wattepe Annual (w) 6. Anni di consumplien: C Qxloliooo 30 2. Annual Operating corte O=Cx:121 .3.63 8. Au count Rate 10% 19. EACL -0.Coxif[1-61+i)n] ies 2.25 40000 500 2. RO 3.5 04335 vor -0.65 - 3.89 Note - A fiqures are in parentheus, mean negative value, y any