Because unintended lane changes by distracted drivers are responsible for 43% of all highway fatalities, Ford Motor Co. and Volvo launched a program to jointly develop a technology to prevent accidents by sleepy or distracted drivers. A device costing $260 tracks lane markings and sounds an alert during lane change. If these devices are included in 100,000 new cars per year beginning 3 years from now, determine the present worth of the cost over a 10-year period at an interest rate of 10% per year.
Because unintended lane changes by distracted drivers are responsible for 43% of all highway fatalities, Ford Motor Co. and Volvo launched a program to jointly develop a technology to prevent accidents by sleepy or distracted drivers. A device costing $260 tracks lane markings and sounds an alert during lane change. If these devices are included in 100,000 new cars per year beginning 3 years from now, determine the present worth of the cost over a 10-year period at an interest rate of 10% per year.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Because unintended lane changes by distracted drivers
are responsible for 43% of all highway fatalities,
Ford Motor Co. and Volvo launched a program to
jointly develop a technology to prevent accidents
by sleepy or distracted drivers. A device costing
$260 tracks lane markings and sounds an alert during
lane change. If these devices are included in
100,000 new cars per year beginning 3 years from
now, determine the present worth of the cost over a
10-year period at an interest rate of 10% per year.
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