A new six-speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional four speed transmissions in front-wheel drive cars. If a four-speed transmission car averages 28 miles per gallon and gasoline costs $4.00 per gallon, how much extra can a motorist pay for a fuel-efficient six- speed transmission? Assume that the car will be driven for 130,000 miles over its lifetime of 15 years. The motorist can earn 7% per year on investments. Assume miles driven each year are roughly constant. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 7% per year. GIZER The motorist can pay for a fuel-efficient six-speed transmission extra $ (Round to the nearest dollar.)

A new six-speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional four speed transmissions in front-wheel drive cars. If a four-speed transmission car averages 28 miles per gallon and gasoline costs $4.00 per gallon, how much extra can a motorist pay for a fuel-efficient six- speed transmission? Assume that the car will be driven for 130,000 miles over its lifetime of 15 years. The motorist can earn 7% per year on investments. Assume miles driven each year are roughly constant. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 7% per year. GIZER The motorist can pay for a fuel-efficient six-speed transmission extra $ (Round to the nearest dollar.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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am. 112.
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