what is The maximum price per new bulb the engineer should be willing to pay ???
ID: 2577075 • Letter: W
Question
what is The maximum price per new bulb the engineer should be willing to pay ????
plant engineer wishes to know which of two types o lightbulbs should be used to light a warehouse. The bulbs that are cumeny used cost 549 60 per bulb and last 14,600 hours before burning out The new bub (at 561 1 per bub) esvides the same amourt of ight and consumes the same amount of energy, but it lasts twice as long The labor cost to change a bulb is 518 00. The lighes are on 21 hours a day. 365 days a year (Assune that the ferm's mgal tte .. ws)The firm's Musa 13% what is the maximum prkn(per bub) heengineer thould be w.ing to pay toswechtothe new bub? Rond he senice "e ofthe old bub to the nearest whole nude oathe icon to view the inheres, factors tor discrete compounding when3%per year More int Composnd Present Compound Sinking PresentCapital Fund Factor Wrw Recovery Factor Amount Factor Factor L N) 8850 1 1300 127697831 4429 653 1 6305 6133 1 0000 3 4069 235 23612 845802062 29745 3362 0 4235 5 8424 0 5428 64003 1543 35172 .2843 2 082 0 4803 3626 04251 26504 3227 1202 39975 0 2502 104047 00861 2 7573 0784 49 2004 Enter yoz inthe wwer b0x and then cick 4226 2261 0 3762Explanation / Answer
The image was not clear so Labour cost I assumed as $18.If it is not correct please send me the msg ,will make the correction.
Useful life of the old bulb: = 14,600 hrs x (21 hrs x 365 days) 2 Years Useful life of the new bulb = 2years x 2 4 Years Compute the equivalent present worth cost for each option Let X denote the price for the new light bulb. PW(15%) Old Bulb = (1-35%) x [$49.60 + $49.60(P/F(13%,2) $57.49 PW(15%) New Bulb = (1-35%) x [X + $18] Break-even price for the new bulb = .65X + 10.4 = 57.49 $70.44 The maximum price per new bulb the engineer should be willing to pay is $70.44Related Questions
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