A large company is considering changing all the light bulbs in their office buildings to new, more efficient bulbs. The accountant said the return on the investment is equal to the annual energy savings divided by the net installation cost. They received two bids. For the first bid, the annual cnergy savings is modelled by 14x and the net installation cost by 3x-1 where x represents the number of light bulbs in the hundreds. The company estimates that 2500 bulbs would need to be replaced. For the second bid the savings was modelled by 10x and thec cost by 2r +1 for the same representation of x and for at least 2500 bulbs. a) Write an expression to model the return on investment for the first bid. b) Write an expression to model the return on investment for the second bid. ) At what number of bulbs would the return on investment be the same for both bids? ) Which bid is the better bid to take? Explain why.

A large company is considering changing all the light bulbs in their office buildings to new, more efficient bulbs. The accountant said the return on the investment is equal to the annual energy savings divided by the net installation cost. They received two bids. For the first bid, the annual cnergy savings is modelled by 14x and the net installation cost by 3x-1 where x represents the number of light bulbs in the hundreds. The company estimates that 2500 bulbs would need to be replaced. For the second bid the savings was modelled by 10x and thec cost by 2r +1 for the same representation of x and for at least 2500 bulbs. a) Write an expression to model the return on investment for the first bid. b) Write an expression to model the return on investment for the second bid. ) At what number of bulbs would the return on investment be the same for both bids? ) Which bid is the better bid to take? Explain why.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 8P

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