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The Autocar E3 truck has an energy recovery system developed by Hannifin LLC that is expected to reduce fuel consumption by 50%

Economics

The Autocar E3 truck has an energy recovery system developed by Hannifin LLC that is expected to reduce fuel consumption by 50%. Pressurized fluid flows 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 $800 per month. How much can a private waste hauling company afford to spend on the recovery system, if it wants to recover its investment in 3 years at an interest rate of 12% per year?

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