Consider a hybrid vehicle with a sticker price of $31,500. These vehicles will average 30 miles per gallon of gasoline. $1,500 tax credit for hybrid vehicles Effectively reduce the sticker price to $30,000. A gasoline-only vehicle that Comparablely equipped will cost $28,000 and will average 25 miles per gallon of gasoline. Assuming an interest rate of 3% per year and a five-year study period, find the cost gasoline breakeven ($/gal)
Consider a hybrid vehicle with a sticker price of $31,500. These vehicles will average 30 miles per gallon of gasoline. $1,500 tax credit for hybrid vehicles Effectively reduce the sticker price to $30,000. A gasoline-only vehicle that Comparablely equipped will cost $28,000 and will average 25 miles per gallon of gasoline. Assuming an interest rate of 3% per year and a five-year study period, find the cost gasoline breakeven ($/gal)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a hybrid vehicle with a sticker price of $31,500. These vehicles will average 30 miles per gallon of gasoline. $1,500 tax credit for hybrid vehicles Effectively reduce the sticker price to $30,000. A gasoline-only vehicle that Comparablely equipped will cost $28,000 and will average 25 miles per gallon of gasoline. Assuming an interest rate of 3% per year and a five-year study period, find the cost gasoline breakeven ($/gal)
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