A gasoline engine is an internal combustion engine that requires fuel for its combustion and operation. Due to the development of its technology new designs are being developed. Among the new design of the engine, is the variable compression turbo or VC-turbo that makes it more fuel-efficient, and moving parts are subjected to less mechanical stress. Another design is the variable geometry turbo or VGT which is focused on energy recovery from the exhaust system of the engine. Comparing to standard engine design: VC- Turbo is 1.10 times the standard engine cost. The maintenance cost is reduced by 0.67 than the usual. The fuel consumption is decreased by 0.19. VGT is 1.05 times the standard engine cost. The maintenance cost is reduced by 0.34 than the usual. The fuel consumption is decreased by 0.06. The standard engine costs P320,000.00, the maintenance cost on average is at P15,000.00 every 3 months. The average fuel consumption is 10 km per liter. Consider the present cost of the engine and maintenance cost within 1 year of engine usage with an interest rate of 9% compounded semi-annually. Then, consider 12,000 km of travel for fuel consumption with gasoline priced at P45.00 per liter. How much is the dereference of benefit of using VCT against VGT (VCT benefit-VGT benefit), in pesos?
A gasoline engine is an internal combustion engine that requires fuel for its combustion and operation. Due to the development of its technology new designs are being developed. Among the new design of the engine, is the variable compression turbo or VC-turbo that makes it more fuel-efficient, and moving parts are subjected to less mechanical stress. Another design is the variable geometry turbo or VGT which is focused on energy recovery from the exhaust system of the engine. Comparing to standard engine design: VC- Turbo is 1.10 times the standard engine cost. The maintenance cost is reduced by 0.67 than the usual. The fuel consumption is decreased by 0.19. VGT is 1.05 times the standard engine cost. The maintenance cost is reduced by 0.34 than the usual. The fuel consumption is decreased by 0.06. The standard engine costs P320,000.00, the maintenance cost on average is at P15,000.00 every 3 months. The average fuel consumption is 10 km per liter. Consider the present cost of the engine and maintenance cost within 1 year of engine usage with an interest rate of 9% compounded semi-annually. Then, consider 12,000 km of travel for fuel consumption with gasoline priced at P45.00 per liter. How much is the dereference of benefit of using VCT against VGT (VCT benefit-VGT benefit), in pesos?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A gasoline engine is an internal combustion engine
that requires fuel for its combustion and operation.
Due to the development of its technology new
designs are being developed. Among the new design
of the engine, is the variable compression turbo or
VC-turbo that makes it more fuel-efficient, and
moving parts are subjected to less mechanical stress.
Another design is the variable geometry turbo or VGT
which is focused on energy recovery from the
exhaust system of the engine.
Comparing to standard engine design:
VC- Turbo is 1.10 times the standard engine cost.
The maintenance cost is reduced by 0.67 than the
usual. The fuel consumption is decreased by 0.19.
VGT is 1.05 times the standard engine cost. The
maintenance cost is reduced by 0.34 than the usual.
The fuel consumption is decreased by 0.06.
The standard engine costs P320,000.00, the
maintenance cost on average is at P15,000.00 every
3 months. The average fuel consumption is 10 km per
liter.
Consider the present cost of the engine and
maintenance cost within 1 year of engine usage with
an interest rate of 9% compounded semi-annually.
Then, consider 12,000 km of travel for fuel
consumption with gasoline priced at P45.00 per liter.
How much is the dereference of benefit of using VCT
against VGT (VCT benefit-VGT benefit), in pesos?
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