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 standardfluorescent lamps. The lamps are close to completing their service life and are to bereplaced by their 34-W high-efficiency counterparts that operate on the existingstandard ballasts. The standard and high-efficiency fluorescent lamps can be purchasedin 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 operatinghours. Taking the unit cost of electricity to be $0.105/kWh and the ballast factor to be1.1 (i.e., ballasts consume 10 percent of the rated power of the lamps), determine howmuch 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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