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: 9780134870069
17th Edition
Authors: William Sullivan, Elin Wicks, C Koelling
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