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0 (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

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0 (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) (5-36) A parking garage has a capital investment cost of $2.1 million (not including land). One year later $1.2 mil- lion will be spent on finishing work on the garage. It will cost $2 million to tear down and dispose of the garage at the end of its 25-year useful life. If the MARR is 25% per year, what is the capital recovery cost of the garage? (5.5)

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