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(15 Points} You can buy a used "gas guzzler" ear for 35000 that gets 15 miles per gallon or you can buy a Hybrid for $30,000 that gets it)...

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(15 Points} You can buy a used “gas guzzler“ ear for 35000 that gets 15 miles per gallon
or you can buy a Hybrid for $30,000 that gets it) miles per gallon. Assuming: i} gasoline
costs are $3.5!gallon, ii] you drive an average of 10,000 miles per year. iii) you can get
5% interest on your moneyI in an alternative investment. and iv) you can sell the old car in
5 years for $3flflfl; for what price must you be able to sell the Hybrid in 5 years to
have the same total cost of ownership for both ears. What other issues of sustainability (think about life cycles.) are important in this consideration.

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Just calculate the total cost of ownership for gaz guzzler and equate it with hybrid vehicle... View the full answer

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