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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-9% per year): Blowby $400 6% $7 9 years Windshear Air-vantage $1,100 30% Capital investment Drag reduction Maintenance per year Useful life $800 18% $8 116% in drag reduction means 3% in fuel savings per mile, how many miles do the tractors have to be driven per is air-vantage the best choice? (Note: Fuel cost is expected to be $2.50 per gallon, and average fuel consumption $6 12 years 4 years year before the windshear deflector is favored over the other deflectors? Over what range of miles driven per year is 4 miles per gallon without the deflectors.) Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per 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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