The Ford Motor Company has re-designed its best selling truck by substituting aluminum for steel in many key lady parts. This saves 620 pounds of weight and decreases gas consumption. The fuel consumption will be 20 miles per gallon (mpg), up from 18 mpg of the previous year's model. Ford will increase the sticker price of the re-designed vehicle by $310. Assume this vehicle will be driven 10,000 miles per year and its life will be 10 years. The owner's MARR is 14% per year and gasoline costs $3.18 per gallon. What is the present worth of the incremental capital outlay for the lighter truck?
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per year
The present worth of the incremental capital outlay for the lighter truck is $. (Round to the nearest dollar)
