Developed continuous variable transmission

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A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg of gasoline. The extra cost of a CVT is $700 on the sticker price of a new car. For a particular model averaging 25 miles per gallon with the CVT. what is the cost of gasoline (dollars per gallon) that makes this option affordable when the buyer's interest rate is 15% per year? The car will be driven 100.000 miles uniformly over an eight-year period.

Reference no: EM131304641

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