There's a fairly inexpensive alternative you might consider. You can take the output of a very simple encoder/tach, and send it to a phased-locked-loop digital frequency multiplier. this can easily be designed to put out virtually any number of count pulses per revolution as are desired - - - and these can drive a counter to give you an encoded output. This is especially useful in a dirty environment such as automotive, where optics might be a problem. (You could use the "gear tooth" type sensors like those on ABS systems.)
By the way, does anyone know who Today produces those sensors? In the past, if I recall it was a company with a name like "SK".
KM