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 of
the lamps are kept on during operating hours. Taking the unit cost of
electricity to be \(\$ 0.105 / \mathrm{kWh}\) 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.