How much will the e85 fuel have to cost per gallon to make

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Reference no: EM13603671

Ethanol blended with gasoline can be used to power a 'flex-fueled"car. One particular blend that is gaining in popularity is E85, which is 85% ethanol and 15% gasoline. E85 is 80% cleaner burning than gasoline alone, and it reduces our dependency on foreign oil. But a flex -fueled car costs $1,000 more than a conventional gasoline- fueled car. Additionally, E85 fuel gets 10% less mikes per gallon than a conventional automobile. Consider 100% gasoline fueled car that average about 27 miles per gallon. If either car will be driven 81,000 miles before being traded in, how much will the E85 fuel have to cost (per gallon) to make the flex-fueled car as economically attractive as conventional gasoline-fueled car? Gasoline costs $2.89 per gasoline. Work this problem without considering the time value of money.

Reference no: EM13603671

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