View the step-by-step solution to:

Question

1.    A business wants to reduce its energy use. One option is to replace ten existing 50 watt fluorescent

lights with ten new, 8 watt LED lights that provide the same amount and quality of lighting. The lights are used 12 hours per day, 250 days per year. The cost of electricity is $0.2/kWh. Each LED light costs $11. Assume the new lights last 10 years and that the time frame of the analysis is 10 years. Assume that the electricity system has power plants with an average heat rate of 8000 Btu/kWh. 

a.    How much total primary energy is saved by the ten new lights, in MJ, over the entire time frame of the analysis?



b.    What is the net present value of the investment, assuming a 5% discount rate? 



c.    What is the simple (zero discount rate) payback time for the investment? 



d.    What is the present cost per saved MJ?

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Industrial Engineering tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors