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# Assume that gasoline costs $ 3 . 2 0 per gallon and you plan to keep either car for six years. How many miles per

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Assume that gasoline costs $$3\mathrm{.}20$ per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile, ignoring the time value of money?Hybrid cars are touted as a "green" alternative; however, the financial aspects of hybrid ownership are not as clear. Consider the $2020$ Edsel $550$h$,$ which had a list price of $$5,400\text{}($including tax consequences$)$ more than the comparable gasoline$-$only Edsel Additionally, the annual ownership costs $($other than fuel$)$ for the hybrid were expected to be $$350$ more than the traditional sedan. The EPA mileage estimate was $29$ mpg for the hybrid and $21mpg$ for the traditional sedan. a$.$ Assume that gasoline costs $$3\mathrm{.}20$ per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile, ignoring the time value of money? $($Do not round intermediate calculations and round your answer to nearest whole number, e$.$g$.,\text{}32.)$ b$.$ If you drive $16,000$ miles per year and keep either car for six years, what price per gallon would make the decision to buy the hybrid worthwhile, ignoring the time value of money? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,\text{}32\mathrm{.}16.)$ c$.$ Gasoline costs $$3\mathrm{.}20$ per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile? Assume the appropriate interest rate is $10$ percent and all cash flows occur at the end of the year. $($Do not round intermediate calculations and round your answer to the nearest whole number, e$.$g$.,\text{}32.)$ d$.$ If you drive $16,000$ miles per year and keep either car for six years, what price per gallon would make the decision to buy the hybrid worthwhile? Assume the appropriate interest rate is $10$ percent and all cash flows occur at the end of the year. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,\text{}32\mathrm{.}16.)$

Assume that gasoline costs $$3\mathrm{.}20$ per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile, ignoring the time value of money?Hybrid cars are touted as a "green" alternative; however, the financial aspects of hybrid

ownership are not as clear. Consider the $2020$ Edsel $550$h$,$ which had a list price of

$$5,400\text{}($including tax consequences$)$ more than the comparable gasoline$-$only Edsel

Additionally, the annual ownership costs $($other than fuel$)$ for the hybrid were

expected to be $$350$ more than the traditional sedan. The EPA mileage estimate was $29$

mpg for the hybrid and $21mpg$ for the traditional sedan.

a$.$ Assume that gasoline costs $$3\mathrm{.}20$ per gallon and you plan to keep either car for six

years. How many miles per year would you need to drive to make the decision to buy

the hybrid worthwhile, ignoring the time value of money? $($Do not round intermediate

calculations and round your answer to nearest whole number, e$.$g$.,\text{}32.)$

b$.$ If you drive $16,000$ miles per year and keep either car for six years, what price per

gallon would make the decision to buy the hybrid worthwhile, ignoring the time value

of money? $($Do not round intermediate calculations and round your answer to $2$

decimal places, e$.$g$.,\text{}32\mathrm{.}16.)$

c$.$ Gasoline costs $$3\mathrm{.}20$ per gallon and you plan to keep either car for six years. How

many miles per year would you need to drive to make the decision to buy the hybrid

worthwhile? Assume the appropriate interest rate is $10$ percent and all cash flows

occur at the end of the year. $($Do not round intermediate calculations and round your

answer to the nearest whole number, e$.$g$.,\text{}32.)$

d$.$ If you drive $16,000$ miles per year and keep either car for six years, what price per

gallon would make the decision to buy the hybrid worthwhile? Assume the

appropriate interest rate is $10$ percent and all cash flows occur at the end of the year.

$($Do not round intermediate calculations and round your answer to $2$ decimal

places, e$.$g$.,\text{}32\mathrm{.}16.)$

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