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The Universal Postal Service is considering the possibility of fixing wind deflectors on the tops of their long-haul tractors. Three types of deflectors, with the
The Universal Postal Service is considering the possibility of fixing wind deflectors on the tops of their long-haul tractors. Three types of deflectors, with the following characteristics, are being considered (MARR =10% per year): Fuel cost is expected to be $6.00 per gallon and average fuel consumption without deflectors is 7 miles per gallon. Construct a breakeven graph. Clearly indicate which truck is preferred over each range of mileage. Include your supporting calculations in your uploaded work. Suggestions: - Remember to include "Do Nothing" - you can drive tractor trailers without wind deflectors. - Use Annual Worth (two of the three cost elements recur annually). - Consider the alternatives in order of capital investment amount
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