A company is concerned about the continued increase in the cost of fuel for its fleet of home delivery units. The cost of fuel is expected to increase by 3% per year over the cost base of $ 5.40 per gallon for years to come. If the logistics manager of the company considers that a unit accumulates an average of 150,000 miles in a year with a fuel efficiency of 10 miles per gallon, what is the Net Present Value of the cost of fuel per unit of transport in the next 7 years, if the company establishes a rate of 12% per year?
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