The lighting requirements of an industrial facility are being met by 700 40-W standardfluorescent lamps.

The lighting requirements of an industrial facility are being met by 700 40-W standard

fluorescent lamps.

The lamps are close to completing their service life and are to be

replaced by their 34-W high-efficiency counterparts that operate on the existing

standard ballasts. The standard and high-efficiency fluorescent lamps can be purchased

in quantity at a cost of $1.77 and $2.26 each, respectively.

The facility operates 2800 hours a year, and all the lamps are kept on during operating

hours. Taking the unit cost of electricity to be $0.105/kWh and the ballast factor to be

1.1 (i.e., ballasts consume 10 percent of the rated power of the lamps), determine how

much energy and money will be saved per year as a result of switching to the high efficiency fluorescent lamps. Also, determine the simple payback period.

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