6) Your boss has asked you to evaluate the economics of
replacing 1,000, 60-Watt incandescent light bulbs (ILBs) with 1,000
light-emitting diode light bulbs (LEDs) for a particular lighting
application. During your investigation, you discover that 10-Watt
LEDs costing $12.00 each will provide the same illumination as
standard 60-Watt ILBs costing $1.00 each. Interestingly, LED’s
last, on average, 10 times as long as incandescent bulbs. The
average life of an ILB is one year over the anticipated usage of
1,000 hours each year. Each incandescent bulb costs $1.00 to
install/replace. Installation of a single LED costs $3.00 and it
will also be used 1,000 hours per year. Electricity costs $0.10 per
kilowatt-hour (kWh). A) Draw the cash flow diagrams for both alternatives. B) If the MARR is 10% per year, compare the economics of the two
alternatives using the PW method. C) If the MARR is 10% per year, compare the economics of the two
alternatives using the AW method. D) Discuss your thought process on which alternative you would
choose Show your work Draw a cash flow diagram for each problem. Write out all formulas