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.)

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.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...

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