Thursday, May 15, 2008 at 13:34
David, I am no accountant, but think you would calculate your break even point this way. (using the above figures as an example, you would need to insert your actuals)
If you travel 25000 Km per year & your vehicle uses 18 Litres per 100 Km, then you would use 4500 Litres of fuel. If the fuel cost was $1.50 Litre, the your annual cost for fuel would be $6750.00
If by carrying out your modifications & your vehicle now uses 16 Litres of fuel per 100 Km, you would use 4000 Litres of fuel to travel the same 25000 Km @ $1.50 Litre = $6000.00 annual fuel cost.
Your saving on fuel cost therefore represents $750.00 per year. Your capital outlay to achieve this saving was $$6700.00. This outlay divided by your annual savings ($750.00) would mean that it would take 8.9 years to recoup your cost. Thats just the way I see it & would be happy to be corrected.
OK, so I will get back in my kennel now, & wait for the real answer from someone who knows more than me. Good luck.
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