A Truck Gets Mpg When Driven at a Constant

question 145

Short Answer

A truck gets mpg when driven at a constant speed of x mph (between 50 and 70 mph).If the price of fuel is $1/gallon and the driver is paid $8/hour, at what speed between 50 and 70 mph is it most economical to drive?
__________ mph

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess profitability.

Analytical Methods

Techniques and procedures used to break down complex material or data into simpler parts to understand it better or reach conclusions.

Cash Flows

The full measure of financial transactions entering and leaving a business, essentially shaping its liquidity factor.

Discounted Cash Flow

An investment appraisal technique that values a project or an asset based on the present value of its expected future cash flows.