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.)
