Marty claims that he has invented an internal combustion engine that can run on a 20% corn oil and 80% water mixture as fuel. He claims the big oil companies are keeping it quiet in a giant industry-government conspiracy. As proof he starts up a modified cars engine on gasoline, and then switches to his fuel mixture, and it keeps running! What are the 4 main problems with his invention?

Mully says that Marty's scheme of running the engine on a water-oil mixture is flawed, but if Marty uses the oil to power an electrical generator (with 60% efficiency in converting oil energy into electricity). Then the remaining water can be electrolyzed to hydrogen and oxygen, which can then be used to run the engine. Is Mully's scheme an improvement? Use the 1st and 2nd law to back up your answer.