A plant engineer wishes to know which of two types of light bulbs should be used

Question

A plant engineer wishes to know which of two types of light bulbs should be used to light a warehouse. The bulbs currently used cost $45.00 per bulb and last 14,600 hours before burning out. The new bulb ($60/bulb) provides the same amount of light and consumes the same amount of energy but lasts twice as long. The labor cost to change a bulb is $16.00. The lights are on 19 hrs/day, 365 days/yr. MARR=15%. What is the maximum price per new bulb below which the engineer should switch to the new bulb. (Break enven price) (choose the closest to correct answer)

$96

$93

$89

$72

$98

$105

$101

1.

$96

2.

$93

3.

$89

4.

$72

5.

$98

6.

$105

7.

$101

Explanation / Answer

$89

3.

$89

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