Honda Civic Hybrid Example

Honda Civic Hybrid Example - Civic EX Sedan ($21,175, 25...

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This problem was inspired by an article in the April 2006 issue of Consumer Reports To Hybrid or Not To Hybrid Gas-electric hybrid autos present a dilemma for car buyers. On the one hand, they are more fuel-efficient and produce lower emissions than conventional, gasoline-only cars. On the other hand, hybrids typically cost thousands of dollars more than similar all-gas models. Let’s say you are considering buying a new Honda Civic and are trying to choose between the gasoline-only
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Unformatted text preview: Civic EX Sedan ($21,175, 25 mpg city) and the gas-electric Civic Hybrid Sedan ($24,720, 40 mpg city). Ive chosen the Civic because it is relatively affordable and the hybrid version gets much better gas mileage in the city than the gas-only version. Lets see if the added cost of the hybrid is worth it from a financial standpoint. Assume youll put 15,000 miles per year on the car (the national average). Base your decision on the 5-year cost of owning and operating the car....
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This note was uploaded on 12/07/2011 for the course CIVL 4111 taught by Professor Moore,l during the Fall '08 term at U. Memphis.

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