Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

a Prius even if it has higher fuel consumption. Lets investigate that claim now, assuming a car similar to a Ford Fiesta. The capital cost

a Prius even if it has higher fuel consumption. Lets investigate that claim now, assuming a car similar to a Ford Fiesta. The capital cost to buy it is substantially lower, as are the yearly taxes and insurance, but the fuel consumption is about 50% higher.

  • The car costs $15000 to buy.
  • The capital charge factor is 0.23, the same as the Prius.
  • The taxes, fees, and insurance each year total to $1000.
  • You drive the car 20000 km/year, the same as the Prius.
  • Variable operation and maintenance (VOM) costs add up to $0.018 per kilometer.
  • Fuel costs $2.20 per liter.
  • The car can travel 100 km on 7.7 L of fuel.
  • 1-What is the total fixed cost in dollars per kilometer?
  • 2-What is the variable cost in dollars per kilometer?
  • 3-Is the total levelized cost higher or lower than the Prius (in the video above) given these assumptions? Enter the word "higher" or "lower". If the numbers are within 10% of each other, enter the word "same".

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Surviving An OSHA Audit A Managent Guide

Authors: Frank R. Spellman

1st Edition

0367579340, 978-0367579340

More Books

Students explore these related Accounting questions