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Automobiles of the future will most likely be manufactured largely with carbon fibers made from recycled plastics, wood pulp, and cellulose. Replacing half the ferrous metals in current auto- mobiles could reduce a vehicles weight by 60% and fuel consumption by 30%. One impediment to using carbon fibers in cars is cost. If the justification for the extra sticker price of carbon-fiber cars is solely on fuel savings, how much extra sticker price can be justified over a six-year life span if the carbon-fiber car would average 39 miles per gallon of gasoline compared to a conventional car averaging 30 miles per gal- lon? Assume that gasoline cost $3.00 per gallon, the interest rate is 20% per year, and 117,000 miles are driven uniformly over 6 years.
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