Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 68

The addition of a turbocharger to a small V-6 engine that gets 18 miles per gallon of gasoline can boost its power to that of a V-8 engine and increase fuel efficiency at the same time. If Bill will pay $800 to turbocharge his engine and his fuel efficiency increases by 3 miles per gallon, how many miles will he have to drive each month for 3 years in order to break even Assume the cost of gasoline is $3.25 per gallon and the interest rate is 1% per month.