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The Autocar E3 refuse truck has an energy recovery system developed by Parker Ha

ID: 1091084 • Letter: T

Question

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.

Explanation / Answer

ANSWER: R115,290

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