High-profile vehicles have poor fuel efficiency because of increased wind resistance from their large front area. A

Question:

High-profile vehicles have poor fuel efficiency because of increased wind resistance from their large front area. A number of companies make devices that they claim will significantly increase a vehicle's fuel efficiency. One company claims that by spending $560 on its friction-reducing device, the fuel efficiency of a pickup truck will increase by 25%. Assuming the device works as claimed, for a vehicle that currently gets 20 miles per gallon (mpg), how many miles would the owner have to drive each year to break even in 5 years? Assume the cost of gasoline is $3.50 per gallon and the interest rate is 10% per year.


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

Question Posted: