An old, heavily used warehouse currently has an incandescent lighting system. The lights run essentially 24 hr / d * a * y , 365days / y * r and draw about 10 kW of power. Consideration is be ing given to replacing these lights with fluorescent lights to save on electricity. It is estimated that the same level of lighting can be achieved with 4.5 kW of fluorescent lights. Re placement of the lights will cost about $11,000. Bulb replacement and other maintenance are not expected to be significantly different. Electricity for the lights currently costs \$0.045/kWh . The warehouse is scheduled for de molition in five years to make way for a more modern facility . The company has a MARR of 15%. Should the company replace the incandescent lights with fluorescent lights?
An old, heavily used warehouse currently has an incandescent lighting system. The lights run essentially 24 hr / d * a * y , 365days / y * r and draw about 10 kW of power. Consideration is be ing given to replacing these lights with fluorescent lights to save on electricity. It is estimated that the same level of lighting can be achieved with 4.5 kW of fluorescent lights. Re placement of the lights will cost about $11,000. Bulb replacement and other maintenance are not expected to be significantly different. Electricity for the lights currently costs \$0.045/kWh . The warehouse is scheduled for de molition in five years to make way for a more modern facility . The company has a MARR of 15%. Should the company replace the incandescent lights with fluorescent lights? State any assumptions you make.
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