1. How much would the owner of a pickup truck be justified in paying for the vehicle to be converted to operate on compressed natural gas if the vehicle accumulates 20,000 miles per annum with an average 12 mpg, the savings in fuel costs amounts to $0.50/gallon, the life of the conversion system is 10 years, and the salvage value of the conversion system is 15 percent of its initial cost? Assume that the time value of money is 10 percent.