21 Jul WHAT IS THE BREAK-EVEN COST PER KILOWATT-HOUR?
Compact fluorescent lamps (CFLs) have become more popular in recent years but do they make financia Show more 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 $0.47 and lasts for 1000 hours. A 15-watt CFL which provides the same light costs $3.50 and lasts for 12000 hours. A kilowatt hour of electricity costs $0.123 which is about the national average. A kilowatt-hour is 1000 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? Show less
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