Dupont claims that its synthetic composites will replace metals in the construction of future automobiles. "the fuel mileage will double," says dupont. suppose the light and stronger "composite automobile" will get 50 miles per gallon of gasoline, and the gasoline costs $3.70 per gallon. the anticipated life of the automobile is seven years, i equals 15 % per year, and annual travel is 15 comma 000 miles. the conventional car averages 25 miles per gallon. assume fuel expense is the only expense to be considered.

a. how much more expensive can the sticker price of the composite automobile be and still have it as an economical investment for a prospective auto buyer?
b. what is the tradeoff being made in part (a)?

you had the wrong answer

you can put this in your 11 sentence summary

" most of the money would be invested in innovation, economic convergence."

answer; buying the bill at a discount from the face value to be received at maturity;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.