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The Universal Postal Service is considering the possibility of fixing wind deflectors on the tops of 500 of their long-haul tractors. Three types of deflectors,
The Universal Postal Service is considering the possibility of fixing wind deflectors on the tops of 500 of their long-haul tractors. Three types of deflectors, with the following characteristics, are being considered (MARR = 12% p ar Blowby $600 18% $7 8 years Windshear Air-vantage Capital investment Drag reduction Maintenance per year Useful life $900 24% $8 8 years $1,300 36% $3 5 years 116% in drag reduction means 2% in fuel savings per mile, how many miles do the tractors have to be driven per year before the windshear deflector is favored over the other deflectors? Over what range of miles driven per year is air-vantage the best choice? (Note: Fuel cost is expected to be $3.25 per gallon, and average fuel consumption is 5 miles per gallon without the deflectors.) Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. Determine the range over which each deflector is preferred. (Round to the nearest hundreds.) Select Blowby Select Windshear Select Air-vantage
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