Toyota will bring hybrid electric automobiles to market next year priced at $33,000 (this includes a ​$8250 federal tax​ credit). At $2.04 per gallon of​ gasoline, it will take 8 years to recoup the difference in price between a base model Toyota Camry and its​ four-cylinder gasoline-only counterpart. The price difference is $3120. If the hybrid vehicle is driven for 12 years, what is the internal rate of return on the extra investment in the​ hybrid? The internal rate of return on the extra investment in the hybrid is _______​%. (Round to one decimal​ place.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Toyota will bring hybrid electric automobiles to market next year priced at $33,000 (this includes a ​$8250 federal tax​ credit). At $2.04 per gallon of​ gasoline, it will take 8 years to recoup the difference in price between a base model Toyota Camry and its​ four-cylinder gasoline-only counterpart. The price difference is $3120. If the hybrid vehicle is driven for 12 years, what is the internal rate of return on the extra investment in the​ hybrid?

The internal rate of return on the extra investment in the hybrid is _______​%. (Round to one decimal​ place.)

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