Retrofit gasoline pumps at your filling station

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It costs $30,000 to retrofit gasoline pumps at your filling station so the pumps can dispense E85 (85% ethanol and 15% gasoline). If your station makes a profit of S0.08 per gallon from selling E85 and sells an average of 20,000 gallons of E85 per month, how many months will it take to recoup the $30,000 investment? The interest rate is 1% per month.

Reference no: EM131236769

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Retrofit gasoline pumps at your filling station : It costs $30,000 to retrofit gasoline pumps at your filling station so the pumps can dispense E85 (85% ethanol and 15% gasoline). If your station makes a profit of S0.08 per gallon from selling E85 and sells an average of 20,000 gallons of E85 per mo..

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