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:He is saying that only 1/3 of the total power is converted to usefull work (200hp in this case). Thus, the engine has a 600hp potential (100 % efficiency). If he meant it that way, then an engine with 600 hp potential would make 200 crank horsepower, 200 out the exhaust, and 200 through the cooling system. But he said about 70 goes out the exhaust. Either way he meant it, an engine that produces xxx HP at the crank would expel the exact same value out the exhaust, since it is broken into even thirds.
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