How much extra can a motorist pay for a fuel

Assignment Help Engineering Mathematics

Reference no: EM131505885

Question: A new six-speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional fourspeed transmissions in front-wheel drive cars. If a four-speed transmission car averages 30 miles per gallon and gasoline costs $4.00 per gallon, how much extra can a motorist pay for a fuel-efficient six-speed transmission? Assume that the car will be driven for 120,000 miles over its lifetime of 10 years. The motorist can earn 6% per year on investments.

Reference no: EM131505885

Questions Cloud

Determine the fw of the given engineering project : Determine the FW of the following engineering project when the MARR is 15% per year. Is the project acceptable?

Explains the two types of research : Explains the two types of research and include brief explanations about the advantages and disadvantages of each as related to how they could be used by MM.

What does cultural significance mean to people : The symbolism, meaning, or cultural significance that is attached to the place of interest? What does it mean to people? What does it symbolize?

How diverse demographics influence the health care industry : Define diversity. Explain how diverse demographics influence the health care industry. Consider culture, gender, religion and spirituality, and social status.

How much extra can a motorist pay for a fuel : A new six-speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional fourspeed transmissions.

Effects experiencing cultural discontinuity : Ways in which power and culture are related, including a personal example, or one you witnessed, of feeling empowered and/or marginalized.

What is the current value of jims bonds : Last month Jim purchased $10,000 of U.S. Treasury bonds (their face value was $10,000). These bonds have a 30-year maturity period, and they pay 1.5%interest.

Implementing the bottom-up strategy : When looking to invest corporate dollars, do you think the top-down approach is preferred over the bottom-up approach? Why or why not?

How much money will you lose if the value of bond is given : The price of a 10-year bond can decline by approximately 9% if interest rates rise by 1% point. To illustrate this, suppose you own a 10-year U.S.

User Account

All Pages