A small regional hospital has 550 fluorescent light fixtures which operate 24 hours/day, year round. Each...

 

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A small regional hospital has 550 fluorescent light fixtures which operate 24 hours/day, year round. Each fixture requires two bulbs. The fixtures currently accommodate T12 fluorescent bulbs with choke ballasts but hospital administration is considering replacing the fixtures to accommodate more energy efficient T8 bulbs with electronic ballasts. The installation cost of the new fixtures (including bulbs) is $45 per fixture. The T12 bulbs cost $1.00 per bulb and use 84 watts of electricity per hour. The T8 bulbs cost $2.50 per bulb and use 60 watts of electricity per hour. The life expectancy of both T8 and T12 bulbs averages 19,800 hours. Bulbs are routinely replaced at their expected life. The average annual replacement cost of bulbs is to be included in the analysis. In addition to their kilowatt-hour electricity savings, the T8 bulbs generate less heat so this will reduce cooling costs during the summer but will increase heating costs in the winter. The annualized cooling cost savings from the T8 bulbs are $450/year. The annualized heating cost increase from the T8 bulbs is $262/year. Electricity costs $0.15/kWh. MARR is 4.5% per year. The hospital is due a major renovation in 4 years so a 4 year evaluation period is appropriate. Neither lighting system is expected to have a salvage value at that time. Based on a future worth comparison of alternatives, which bulbs are preferred? Assume there are 365 days in a year. Click here to access the TVM Factor Table Calculator. The future worth of T12 bulbs is $ The future worth of T8 bulbs is $ Carry all interim calculations to 5 decimal places and then round your final answers to whole numbers. The tolerance is ±10. ✓bulbs are preferred. A small regional hospital has 550 fluorescent light fixtures which operate 24 hours/day, year round. Each fixture requires two bulbs. The fixtures currently accommodate T12 fluorescent bulbs with choke ballasts but hospital administration is considering replacing the fixtures to accommodate more energy efficient T8 bulbs with electronic ballasts. The installation cost of the new fixtures (including bulbs) is $45 per fixture. The T12 bulbs cost $1.00 per bulb and use 84 watts of electricity per hour. The T8 bulbs cost $2.50 per bulb and use 60 watts of electricity per hour. The life expectancy of both T8 and T12 bulbs averages 19,800 hours. Bulbs are routinely replaced at their expected life. The average annual replacement cost of bulbs is to be included in the analysis. In addition to their kilowatt-hour electricity savings, the T8 bulbs generate less heat so this will reduce cooling costs during the summer but will increase heating costs in the winter. The annualized cooling cost savings from the T8 bulbs are $450/year. The annualized heating cost increase from the T8 bulbs is $262/year. Electricity costs $0.15/kWh. MARR is 4.5% per year. The hospital is due a major renovation in 4 years so a 4 year evaluation period is appropriate. Neither lighting system is expected to have a salvage value at that time. Based on a future worth comparison of alternatives, which bulbs are preferred? Assume there are 365 days in a year. Click here to access the TVM Factor Table Calculator. The future worth of T12 bulbs is $ The future worth of T8 bulbs is $ Carry all interim calculations to 5 decimal places and then round your final answers to whole numbers. The tolerance is ±10. ✓bulbs are preferred.

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The Future worth of T12 bulbs at 5 MARR 2065 The Future worth of T8 bulbs at 5 MARR 4132 An analysis ... View the full answer