Car "Standard" gets 25 miles per gallon and retails for $24,000, whereas Car "Hybrid" gets 50 miles per gallon. The price of gas is expected to be $5 per gallon over the next five years. In all regards outside of gas mileage, "Standard" and "Hybrid" provide identical benefits. An environmentally conscious consumer drives 20,000 miles per year and considers buying "Hybrid" for commuting over the next five years. What is the highest price this consumer should be willing to pay for "Hybrid"? (For the purpose of this question, do not discount future costs or savings back to present value.)

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The difference in gas mileage between the two cars is 50 25 25 miles per gallon This means that for ... View the full answer