Cost Benefit Analysis over 10 years

Do a cost benefit analysis to decide wheteher to switch from a gas car to an electric car.

HINT: Make cash flow table for 10 years reflecting the total savings of switching from gas car to electric car

The government is offering an incentive of $11,000 for trading your gas car in and buying an electric vehicle

Assume that cost of gas will increase by 5% each year

You must include NPV and IRR for both comparisons in excel AND make a reccommendation

Interest rate = 4.50%

(you are free to make any other assumtions or rates you make, but be sure to clearly list them)

Electric Vehicle			Gas Car
Cost of Electric Car	15,000
Electricity cost per kWh	0.125		cost of fuel per gallon	4.16
EV electricity consumption - kWh per mile	.483kWh/m		mpg	28.6
eFuel Cost / mile	0.06		Gas Cost / mile	0.15
# of miles driven per year	8,500		# of miles driven per year	8,500
Total Fuel Costs / yr	513.19		Total Fuel Costs / yr	1,236.36
Maintenance Costs	485.00		Maintenance Costs	1,500.00
Total Cost / yr	998.19		Total Cost / yr / car	2,736.36