10. The Cooper Company is considering investing in a recuperator. The recuperator will have an initial cost of $20,000 and a service life of 10 years.

Operating and maintenance costs for the fi rst year are estimated to be $1,500, increasing by $100 every year thereafter. It is estimated that the salvage value of the recuperator will be 20% of its initial cost. The recuperator will result in equal annual fuel savings throughout its service life. Assuming MARR is 12%, what is the minimum value of fuel savings for which the recuperator is attractive?