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Title: The Economic Justification For Specifying Diesel Over Gasoline Engines
Author: Robert E. Mindheim
Source: American Gas Association 1978
Year Published: 1978
Abstract: The method selected for justifying diesel engines over gasoline, (or any other technological innovation) should be made based on the management desires of the Company. Many firms will base the acceptance or rejection on a simple payout calculation of dollars saved versus additional cost. For example, a diesel engine may involve 3,000 additional investment in the vehicle and result in a full cost savings of 800 per year. The payout, or the length of time necessary to recover this investment is 3.75 years and assuming this is less than the life of the vehicle, provides an acceptable additional investment.

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