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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...

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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.

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

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