In the aviation business winglets to an existing aircraft offers fuel savings of approximately 3% of the gas bill, or 150,000 gallons of jet fuel per year.
Cost is $1.06 per gallon.
Use a 10-year planning for useful life of the plan.
- If the aviation company chooses to discount these savings at a rate of 15% per year of useful life, considering only a 10 year planning horizon, what is the potential cost savings to the customer over the life of this plane?