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

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Light emitting diodes (LED) light bulbs have become required inrecent years, but do they make financial sense? Suppose a typical60-watt incandescent light bulb costs $.39 and lasts 1,000 hours. A15-watt LED, which provides the same light, costs $3.10 and lastsfor 12,000 hours. A kilowatt-hour of electricity costs $.115. Akilowatt-hour is 1,000 watts for 1 hour. If you require a return of11 percent and use a light fixture 500 hours per year, what is theequivalent annual cost of each light bulb? (A negative answershould be indicated by a minus sign. Do not round intermediatecalculations and round your answers to 2 decimal places, e.g.,32.16.)

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Answer Equivalent annual cost is the cost of owning maintaining and operating an asset over the due course of its lifeIt is used to compare the cost effectiveness of assets having unequal lifespans EAC cost of life cost of See Answer

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