You have a Switch LED Lightbulb with the following information:.
It is equivalent to a 40 Watt incandescent lightbulb.
It uses 8 Watts of electricity.
It is estimated to last 25,000 hours.
The purchase price of the lightbulb is $37.99.
The package claims an estimated energy cost of $0.96 per year, but this estimate is not based on local electricity costs.
Assume that local electricity costs $0.086 per kW-hr.
Based on this information, we can now calculate the cost of ownership for this bulb. The cost of ownership is defined as the purchase price of the lightbulb plus the cost of the electricity required to run the lightbulb until failure.