Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 57

The Autocar E3 refuse truck has an energy recovery system developed by Parker Hannifi n LLC that is expected to reduce fuel consumption by 50%. Pressurized fluid fl ows from carbon fiber-reinforced accumulator tanks to two hydrostatic motors that propel the vehicle forward. (The truck recharges the accumulators when it brakes.) The fuel cost for a regular refuse truck is $900 per month. How much can a private wastehauling company afford to spend now on the recovery system, if it wants to recover its investment in 3 years plus a return of 14% per year,compounded semiannually Assume no interperiod compounding.