Business, 21.02.2020 20:45 tchase0616

Are you thinking of bypassing a gasolinefueled car in favor of a hybrid (gasoline and electric) automobile? Let's take a look at the relative economics of your possible choice. The gasoline-fueled car sells for $19 comma 00019,000 and gets 2525 miles per gallon (mpg) of fuel. The alternative hybrid vehicle sells for $24 comma 00024,000 and averages 57.357.3 mpg. The resale value of the hybrid car is $2 comma 0002,000 more than that of the gasoline-only car after five years of anticipated ownership. If you drive 14 comma 00014,000 miles per year and gasoline costs $3.503.50 per gallon, what is the internal rate of return on the incremental investment in the hybrid automobile?

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