Question: Lucy.xlsx Use attached Excel sheet. Lucy is considering purchasing a Toyota Corolla (MPG = 35) or a Hybrid (MPG = 55) for her commute to

Lucy.xlsx Use attached Excel sheet. Lucy is considering purchasing a Toyota

Lucy.xlsx Use attached Excel sheet. Lucy is considering purchasing a Toyota Corolla (MPG = 35) or a Hybrid (MPG = 55) for her commute to work. On average, she drives 55,000 miles a year. The hybrid would cost her 15,000 more than the Civic. The following information is provided - the average gas price for the next five years is expected to be $4.80 per gallon. She plans to move out of the country at the end of 5 years. The resale value of the hybrid is $5,200 higher than the Civic. If she decides to opt for the Prius, calculate the NPV of the additional investment if her cost of fund is 8%. Round your answer to 2 decimal points. Annuity factor (n = 5, r = 8%) = 3.99271 PV Factor (n=5, r= 8%) = 0.68058

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