What is the cost of gasoline model that makes this option

Assignment Help Mechanical Engineering

Reference no: EM131197756

A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg of gasoline. The extra cost of a CVT is $800 on the sticker price of a new car. For a particular model averaging 28 miles per gallon with the CVT, what is the cost of gasoline (dollars per gallon) that makes this option affordable when the buyer 's interest rate is 10% per year? The car will be driven 100,000 miles uniformly
over an eight-year period.

Reference no: EM131197756

Questions Cloud

Retirement savings account : You currently have $575,000 in your retirement savings account. You would like to have $2,000,000 when you retire 15 years from today. How much must you deposite (in equal amounts) at the end of each of the next fifteen years in order to reach your g..

What is plato saying with this allegory : What is Plato saying with this allegory? (make sure to use your own words)

Potential arguments for and against gene patenting : What are the potential arguments for and against gene patenting? What are your thoughts regarding the HGP? Support your answer with appropriate documentation.

Interest in order to be able to buy the boat upon retirement : Mr. & Mrs. Dier wish to purchase a boat in 8 years when they retire. They are planning to purchase the boat using proceeds from the sale of their property which is currently worth $90,000 and its value is growing at 7 percent a year. how much additio..

What is the cost of gasoline model that makes this option : what is the cost of gasoline (dollars per gallon) that makes this option affordable when the buyer 's interest rate is 10% per year? The car will be driven 100,000 miles uniformlyover an eight-year period.

Working for a successful company : Imagine you are working for a successful company that has spent a lot of time focusing strategically on its organizational behavior. Your company has started to gain recognition from similar companies regarding its effective groups and teams. Rece..

Accumulate enough money to buy her dream house with cash : Mary wants to buy a house but does not want to get a loan. Her dream house has an average price of $500,000 and its price is growing at 5 percent per year. How much should Mary invest in a project at the end of each year for the next 5 years in order..

Describe different processes within crm : Describe Customer Relationship Management (CRM) and how it fits in with Enterprise Systems and describe different processes within CRM

What are the four most reliable strategic approaches : What are the four most reliable strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage?

User Account

All Pages