A new six-speed automatic transmission for automobiles, Ask an Expert

Management Studies

A new six-speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional four speed transmission car averages 30 miles per gallon and gasoline costs $3.00 per gallon, how much extra can motorist pay for a fuel-efficient six-speed transmission? Assume that the car will be driven for 120,000 miles over its lifetime of 10 years. the motorist can earn 6% per year on investments.

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Operation Management, Management Studies

Category:- Operation Management
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