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b) Syazwan is considering buying a new Honda Civic hybrid car priced at RM140,000 or Toyota Vios at RM115,000. The fuel efficiency of Honda is
b) Syazwan is considering buying a new Honda Civic hybrid car priced at RM140,000 or Toyota Vios at RM115,000. The fuel efficiency of Honda is rated at 80km per liter and 60km per liter for Toyota. The annual maintenance for both cars is 0.5% of the car price. The fuel cost is at RM2.00 per liter. The car is expected to be driven about 20,000km per year. Syazwan plan to keep his car for five years only. At the end of fifth year, the resale value of the Honda and Toyota are about 40% and 35% respectively of their original prices. The interest rate is at 6% per annum. Analyze the situation and recommend which car is the better choice from the standpoint of cost? (CO3:P012 - 15 marks)
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