Light emitting diode (LED) light bulbs have become required in recent years, but do they make...

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Light emitting diode (LED) light bulbs have become required inrecent years, but do they make financial sense? Suppose a typical60-watt incandescent light bulb costs $.53 and lasts for 1,000hours. A 15-watt LED, which provides the same light, costs $3.80and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1hour. Suppose you have a residence with a lot of incandescent bulbsthat are used on average 500 hours a year. The average bulb will beabout halfway through its life, so it will have 500 hours remaining(and you can’t tell which bulbs are older or newer).
If you require a return of 9 percent, at whatcost per kilowatt-hour does it make sense to replace yourincandescent bulbs today? (A negative answer should beindicated by a minus sign. Do not roundintermediate calculations and round your answer to 6 decimalplaces, e.g., 32.161616.)

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Solution Breakeven cost 0004009 Working Notes Let C be the cost per Kilowatt hour be the break even cost Particulars 60 watt incandescent light bulb LED 1Bulb x 60 Watts Each 60 Watt 1LED x 15 Watts Each 15 Watt converting watt in into Kilowatt 1 Kilowatt 1000 See Answer

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Light emitting diode (LED) light bulbs have become required inrecent years, but do they make financial sense? Suppose a typical60-watt incandescent light bulb costs $.53 and lasts for 1,000hours. A 15-watt LED, which provides the same light, costs $3.80and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1hour. Suppose you have a residence with a lot of incandescent bulbsthat are used on average 500 hours a year. The average bulb will beabout halfway through its life, so it will have 500 hours remaining(and you can’t tell which bulbs are older or newer).If you require a return of 9 percent, at whatcost per kilowatt-hour does it make sense to replace yourincandescent bulbs today? (A negative answer should beindicated by a minus sign. Do not roundintermediate calculations and round your answer to 6 decimalplaces, e.g., 32.161616.)