What is the present worth of the savings over 10-years

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A concept car that will get 100 miles per gallon and carry 4 persons would have a carbon-fiber and aluminum composite frame with 900 cc three cylinder turbodiesel / electric hybrid power plant. The extra cost of these technologies is estimated to be $11,000. If gasoline savings over a comparable conventional car would be $900 in year 1 , increasing by 10% each year , what is the present worth of the savings over a 10-year period at an interest rate of 8% per year ?

Reference no: EM13209350

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