before tax rate of returns

2. You are looking at a new car. The following data have been obtained for 3 alternatives. Alternative First cost Salvage in 5 yrs Miles per gallon 1 $25,000 $5000 23.5 2 $31,000 $8000 33.9 3 S41,000 $11,000 39.7 The BTRR is 15%. a. Assume the price of fuel is $3.00 per gallon. Find the relevant break even points in miles per year. Construct the cost vs miles curves and show the break even points. b. Assume you drive 15,000 miles per year. Find the break even points in the price of fule. Construct the cost vs fuel price curves and show the break even points. c. Assume you are the policy maker responsible for providing incentives for people to drive more fuel efficient cars What would you do? 2. You are looking at a new car. The following data have been obtained for 3 alternatives. Alternative First cost Salvage in 5 yrs Miles per gallon 1 $25,000 $5000 23.5 2 $31,000 $8000 33.9 3 S41,000 $11,000 39.7 The BTRR is 15%. a. Assume the price of fuel is $3.00 per gallon. Find the relevant break even points in miles per year. Construct the cost vs miles curves and show the break even points. b. Assume you drive 15,000 miles per year. Find the break even points in the price of fule. Construct the cost vs fuel price curves and show the break even points. c. Assume you are the policy maker responsible for providing incentives for people to drive more fuel efficient cars What would you do