I'm not sure, but it probably doesn't account for anything other than aero (and maybe rolling) resistance. Keep in mind that these are only rough guesses and thats really good enough for our calculations. In the real world you'll be fighting wind, getting helped by wind, going up and down hills, being passed by cars and tons of other things. So, the hp variable is really going to alter from second to second while driving. The basic point is to see that lower rpms almost always leads to increased fuel economy, but at the cost of readily avalible power without shifting.
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