Question: What is the NPV for the car selection example below? Example: Buy an Electric Vehicle? Chevy Malibu : $30,000 cost 12K miles/yr 30 mph Maintenance:

What is the NPV for the car selection example below?

Example: Buy an Electric Vehicle?

Chevy Malibu: $30,000 cost 12K miles/yr 30 mph Maintenance: $1K in year 1; 5% CAGR Resale of $5K in ten years Gas: $3.50/g; 10% CAGR D = 7%

Nissan Leaf: $40,000 cost 12K miles/yr 5 miles per kWh Maintenance: $700 in year 1; 5% CAGR New battery in year 5: $5,000 Resale of $3K in ten years $0.11/kWh; 10% CAGR D = 7%

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