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A plant engineer wishes to know which of two types of lightbulbs should be used to light a warehouse. The bulbs currently used cost $45.90 per bulb and last 14,600 hours before burning out. The new bulb ($60 per bulb) provides the same amount of light and consumes the same amount of energy but lasts twice as long. The labor cost to change a bulb is $16.00. The lights are on 19 hours a day, 365 days a year. If the firm’s MARR is 15%, Compute pretax breakeven price for the new bulb (assume that the firm’s marginal tax rate is 40%)
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A plant engineer wishes to know which of two types of lightbulbs should be used to light a warehouse...
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