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Please help with the below problem, please show all work! The Ford Motor Company has re designed its best selling truck by substituting aluminum for
Please help with the below problem, please show all work!
The Ford Motor Company has re designed its best selling truck by substituting aluminum for steel in many key body parts. This saves 710 pounds of weight and decreases gas consumption. The fuel consumption wil be 30 miles per gallon (mpg), up from 26 mpg of the previous year's model. Ford will increase the sticker price of the re-designed vehicle by $410. Assume this vehicle will be driven 12,000 miles per year and its life will be 14 years. The owner's MARR is 7% per year and gasoline costs S3 46 per gallon what is the present worth of he ncremental capital o ay th lighter ruck? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 7% per year. The present worth of the incremental capital outlay for the lighter truck is (Round to the nearest dollar.)Step by Step Solution
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