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An experimental composite engine block for an automobile will trim 20 pounds of weight compared with a traditional cast iron engine block

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An experimental composite engine block for an

automobile will trim 20 pounds of weight compared

with a traditional cast iron engine block. It is estimated

that at least $2,500 in life-cycle costs will be saved for

every pound of weight reduction over the engine's

8-year expected life. Given that the engine's life is

8 years, what assumptions have been made to arrive

at the $2,500 per pound savings?