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Consider a hybrid ( gas - electric ) vehicle with a sticker price of $ 3 1 , 5 0 0 . This vehicle will
Consider a hybrid gaselectric vehicle with a sticker price of $ This vehicle will average miles per gallon of gasoline. A tax credit of $ for the hybrid vehicle is being awarded and thus it effectively reduces its sticker price to $ A comparably equipped gasolineonly vehicle will cost $ and will average miles per gallon of gasoline.
a Assuming gasoline costs of $ per gallon, an interest rate of per year and a study period of five years, find the breakeven mileage per year between the hybrid vehicle and the gasonly vehicle.
b What is the recommended vehicle to purchase if the total mileage per year equals miles?
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