Find maximum price per bulb engineer pay to switch to new


A plant engineer wishes to know which of two types of lightbulbs should be used to light a warehouse. The bulbs currently cost $45.90 per bulb and last an expected 14,600 hours before burning out. The new bulb (at a price of $60 per bulb) provides the same amount of light and consumes the same amount of energy, but lasts on average twice as long.1 The labor cost to change a bulb is $16. The lights are on 19 hours a day, 365 days a year. If the firm's MARR is 15%, what is the maximum price per bulb the engineer should be willing to pay to switch to the new bulb?

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Operation Management: Find maximum price per bulb engineer pay to switch to new
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