Payback Period and NPV of a Cost Reduction Proposal$-$Differential Analysis

average of $12,000$ miles per year for the next several years.

$($Round all of your answers to two decimal places. For example, enter $8\mathrm{.}84$ for $8\mathrm{.}844$ and $8\mathrm{.}85$ for $8\mathrm{.}845.)$

$($a$)$ Determine the payback period of the incremental investment if gasoline costs $$3\mathrm{.}50$ per gallon.

$\text{'}$ years

answer.$)$

$

$($c$)$ Determine the cost of gasoline required for a payback period of three years.

$

$$ per gallon

$($d$)$ At $$3\mathrm{.}50$ per gallon, determine the VUE Green combined gas mileage required for a payback period of three years.

$$ miles per gallon