Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $0.50 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.65 and lasts for 12,000 hours. A kilowatt hour of electricity costs $0.126, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type. An industrial user in West Virginia might pay $0.04 per kilowatt-hour whereas a residential user in Hawaii might pay $0.25. You require a return of 9 percent and use a light fixture 500 hours per year.
What is the break-even cost per kilowatt-hour?
Compact fluorescent lamps (CFLs) have become more popular in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $0.50 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.65 and lasts for 12,000 hours. A kilowatt hour of electricity costs $0.126, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type. An industrial user in West Virginia might pay $0.04 per kilowatt-hour whereas a residential user in Hawaii might pay $0.25. You require a return of 9 percent and use a light fixture 500 hours per year.
What is the break-even cost per kilowatt-hour?
Related questions
| Compact fluorescent lamps (CFLs) have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.55 and lasts 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.90 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $.131, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a return of 11 percent and use a light fixture 500 hours per year, what is the equivalent annual cost of the compact fluorescent lamps (CFLs)? |
| Compact fluorescent lamps (CFLs) have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.41 and lasts 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.20 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $.117, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. If you require a return of 9 percent 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.) |
| Equivalent annual cost | |
| 60-watt incandescent light bulb | $ |
| Compact fluorescent lamps | $ |
