i have some questions please help

Transportation equipment that was purchased in 2004 for $200,000 must be replaced at the end of 2009. what is the estimated cost of the replacement, based on, the following equipment cost index:

Year INDEX YEAR INDEX
2004 223 2007 257
2005 238 2008 279
2006 247 2007 293

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Another question

A set of six long-life light bulbs costs $15.95. Each bulb is rated for 20,000 hours of service and 60 watts of output. The electrical efficiency of each bulb is 85%. The alternative to these long-life bulbs is a standard 60 watt bulb that costs 60 cents ($0.60), is rated for 1000 hours of service and is 95% efficient.

a) If the cost of electricity is 10 cent ($0.10) per kilowatt-hour, which type of bulb is better when lighting is per year. Assume end-of-year cash-flow convention.

b) what factors besides cost may dictate the choice of the better light bulb ??

thanks in advance

just help me

Sure, I can help you with those questions. Let's start with the first one about the estimated cost of replacement for the transportation equipment.

To find the estimated cost of replacement, we need to use the equipment cost index to adjust the initial cost based on the changes in prices over the years.

Here's how you can calculate it:

1. Find the cost index for the years 2004 and 2009:
- For 2004: Cost index = 223
- For 2009: Cost index = ? (not provided)

2. Calculate the annual average increase in the cost index:
- Change in cost index = Cost index 2009 - Cost index 2004
- Average annual increase = Change in cost index / Number of years
- Number of years = 2009 - 2004 = 5

3. Calculate the estimated cost of replacement:
- Initial cost = $200,000 (given)
- Estimated cost of replacement = Initial cost * (1 + Average annual increase)

Note: Since the cost index for 2009 is not provided, you will need to substitute the actual value in the above formula to get the exact estimated cost of replacement.

Moving on to the second question about choosing between long-life bulbs and standard bulbs based on cost and other factors:

a) To determine which type of bulb is better in terms of cost when lighting per year, we need to consider the following factors:
- Cost of electricity: $0.10 per kilowatt-hour (given)
- Number of hours the bulb is used: ?
- Cost of each bulb: $15.95 for long-life bulb and $0.60 for standard bulb (given)
- Efficiency of each bulb: 85% for long-life bulb and 95% for standard bulb (given)

To calculate the cost of electricity consumed by each bulb type per year, we can use the formula:
Cost of electricity per year = (Power rating in watts * Number of hours used per year * Cost of electricity per kilowatt-hour) / (Efficiency in decimal)

Compare the total cost of electricity and the cost of bulbs for each type to determine which is more economical.

b) Besides cost, other factors that may dictate the choice of the better light bulb include:
- Lifespan: Long-life bulbs have a longer lifespan than standard bulbs, which may reduce the frequency of replacements.
- Environmental impact: Long-life bulbs are generally more energy-efficient and have a lower carbon footprint.
- Light output: Different bulbs may have different light outputs, which could impact the suitability for specific purposes or preferences.

Consider these factors along with the cost when making the decision.

I hope this explanation helps. Let me know if you have any further questions!