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has determined that city / highway combined gas mileage of the Green VUE and regular VUE models are 2 7 and 2 3 miles per

has determined that city/highway combined gas mileage of the Green VUE and regular VUE models are 27 and 23 miles per gallon respectively. Mary anticipates she will travel an average of 12,000 miles per year for the next several years.
(Round all of your answers to two decimal places. For example, enter 8.84 for 8.844 and 8.85 for 8.845.)
(a) Determine the payback period of the incremental investment if gasoline costs $3.50 per gallon.
years
(b) Assuming that Mary plans to keep the car five years and does not believe there will be a trade-in premium associated wi hybrid model, determine the net present value of the incremental investment at an eight percent time value of money. (Use negative sign with your answer.)
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