Answer Happy

Section B Attempt all parts of any two questions in this section - each question is worth 30 marks. Question 2 a) Examine the data in Table Q2(a) and determine the lifetime costs of this hybrid vehicle, A. 17,000 euro 0.12 euro 15 Vehicle purchase cost Vehicle operating cost per mile Useful life of vehicle miles per year mi per gallon Average fuel price per gallon 14,000 32 3.75 Table Q2(a) 10 marks b) The data for a hybrid car B, from a competing car manufacturer is as shown in Table Q2(b). Calculate the indifference point or crossover point between the two vehicle designs. 19,000 euro Vehicle purchase cost Vehicle operating cost per mile Useful life of vehicle 0.09 euro 15 14,000 35 miles per year miles per gallon Average fuel price per gallon 3.75 Table Q2(b) 15 marks c) Which car should you choose if you intend to own it for longer than this time and why? 5 marks