Without the energy recovery system

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The Autocar E3 refuse truck has an energy recovery system that is expected to reduce fuel consumption by 30%. The fuel cost for a regular refuse truck (without the energy recovery system) is $500 per month. How much can a private waste-hauling company afford to spend now on the recovery system, if it wants to recover its investment in 5 years plus a return of 12% per year, compounded quarterly. (a) Assume no inter-period interest (b) Repeat with inter-period interest collected

Reference no: EM131092871

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