5-43. Toyota will bring hybrid electric automobiles to market next year priced at $30,000 (this includes a

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5-43. Toyota will bring hybrid electric automobiles to market next year priced at $30,000 (this includes a $7,500 federal tax credit). At $2.00 per gallon of gasoline, it will take 10 years to recoup the difference in price between a base model Toyota Camry and its four-cylinder gasoline-only counterpart. The price difference is $3,720. If the hybrid vehicle is driven for 15 years, what is the internal rate of return on the extra investment in the hybrid? (5.6)

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Engineering Economy

ISBN: 9781292265001

17th Global Edition

Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling

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