Business, 10.03.2020 00:23 morganpl415

The Universal Postal Service is considering the possibility of fixing wind deflectors on the tops of 500 of their long-haul tractors. Three types of deflectors, with the following characteristics, are being considered (MARRequals=99% per year): Windshear Blowby Air-vantage Capital investment $700700 $500500 $1 comma 3001,300 Drag reduction 1616% 88% 2424% Maintenance per year $1111 $55 $44 Useful life 99 years 1212 years 55 years If 44% in drag reduction means 33% in fuel savings per mile, how many miles do the tractors have to be driven per year before the windshear deflector is favored over the other deflectors? Over what range of miles driven per year is air-vantage the best choice? (Note: Fuel cost is expected to be $3.003.00 per gallon, and average fuel consumption is 55 miles per gallon without the deflectors.)

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The Universal Postal Service is considering the possibility of fixing wind deflectors on the tops of...