Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

It costs $30,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel (85% ethanol and 15% gasoline).

It costs

$30,000

to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel (85% ethanol and 15% gasoline). If the station makes a profit of

$0.06

per gallon from selling E85 and sells an average of

21,000

gallons of E85 per month, how many months will it take for the owner to recoup her

$30,000

investment in the retrofitted pumps? The interest rate is

1%

per month.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Engineering Economy

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

15th edition

132554909, 978-0132554909

More Books

Students also viewed these Finance questions

Question

2. Follow through with fair consequences.

Answered: 1 week ago