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3. Compute the annual fuel cost of each vehicle based on the following assumptions. The price of electricity and gasoline (regular) will automatically populate in

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3. Compute the annual fuel cost of each vehicle based on the following assumptions. The price of electricity and gasoline (regular) will automatically populate in the tool based on market data. a. 15,000 miles per year with 55% city driving b. 10.000 miles per year with 30% city driving c. 25,000 miles per year with 708 city driving 4. Create a spreadsheet to compute and compare the "cost of omnerihip" of each vehicle on a net present value basis Assume insurance, maintenance, and other onnership costs are the same for each vehicle (and thus not relevant to the decision). Build the spreadsheet so that you can easily change the following starting assumptions - Purchase price (cost) of each vehicle (use the KBB estimates from requirement 1). - Annual ftel costs of each vehicle (use the estimates from 3 as your starting assurption). - Expected years of ownership and estimated salvage value of each vehicle (use 10 years and the estimates provided as your starting assumption) - Discount tate (use 12% as your starting assumption). Hint: Use the PV of 51 to discount the salvage value and PV of an annuity to discount the fuel corts. You can look these tp in the table or use an Excel focmula or function to compute it. 5. Based strictly on the economic analysis, which velicle should you purchase? 6. What other qualitative factors might affect your decision about which vehicle to purchase? 7. Use the spreadsheet to perform sensitivity analysis by changing the following assumptions. Treat each scenario independently. reverting to your original assumptions for each part. How did the changing assumption affect the difference in the two vehicles? Would it affect your decision? a. Increase the purchase price of the Chevy Bolt by $5,000. b. Decrease annual mileage to 10,000 miles with 30% city driving (see 3b above). c. Increase annual mileage to 25,000 miles with 70% city drivine (see 3c above). 1. Decrease years of ownership to 5 years (assume the salvage values will remain the same) c. Decease the discount rate to 5%. f. Increase the discount rate to 20%

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