Use the information to answer the following questions: 4. Calculate the NPV of the hybrid model, using the annual fuel s
Posted: Wed Apr 27, 2022 11:11 am
Use the information to answer the
following questions:
4. Calculate the NPV of the hybrid model, using the annual fuel savings as the annual cash inflow for the 10 years you would own the car.
5. Calculate the IRR of the hybrid model, using the annual fuel savings as the annual cash inflow for the 10 years you would own the car.
2022 Honda Civic 2022 Honda Civic Hybrid (Insight) 1a. Cost to purchase $22,359 $27.498 1b. Miles per gallon 33 (city) 55 (city) 2a. Estimated number of miles driven each year 13,500 13,500 2b. Cost of of fuel per tank: $43.77 $37.42 Tank size 12.4 gallons 10.6 gallons Current gas prices $3.53/gallon $3.53/gallon 3a. Total cost of gas for one year $17.905.91 $9,184.91 work (13,500 miles per year/33 mpg) * $43.77 gallon (13,500 miles per yearl 55 mpg) * $37.42/gallon 3b. Savings $8,721 ($17,905.91- $9,184.91) 4. NPA work 5. IRR work - X work
following questions:
4. Calculate the NPV of the hybrid model, using the annual fuel savings as the annual cash inflow for the 10 years you would own the car.
5. Calculate the IRR of the hybrid model, using the annual fuel savings as the annual cash inflow for the 10 years you would own the car.
2022 Honda Civic 2022 Honda Civic Hybrid (Insight) 1a. Cost to purchase $22,359 $27.498 1b. Miles per gallon 33 (city) 55 (city) 2a. Estimated number of miles driven each year 13,500 13,500 2b. Cost of of fuel per tank: $43.77 $37.42 Tank size 12.4 gallons 10.6 gallons Current gas prices $3.53/gallon $3.53/gallon 3a. Total cost of gas for one year $17.905.91 $9,184.91 work (13,500 miles per year/33 mpg) * $43.77 gallon (13,500 miles per yearl 55 mpg) * $37.42/gallon 3b. Savings $8,721 ($17,905.91- $9,184.91) 4. NPA work 5. IRR work - X work