Healthy Chef Creation (HCC) is a local provider of fresh, gourmet,

prepared home meal delivery services in Philadelphia area. HCC is in the process of

purchasing a minivan for food delivery purposes. The company has found two

minivans that will meet their needs. A Dodge Grand Caravan for $28,000, and

Toyota HYB 5 for $36,000. The relevant information about these two vans is

reported in the following table.

Dodge Grand Caravan Toyota Sienna Vehicle purchase cost$28,000 Vehicle purchase cost$36,000 Vehicle operating cost per mile$0.28 Vehicle operating cost per mile$0.32 Useful life of vehicle (years)10Useful life of vehicle (years)10Miles per year25,000Miles per year25,000Miles per gallon (MPG)20Miles per gallon (MPG)36Average fuel price per gallon$3.65 Average fuel price per gallon$3.65

a) What is the total life cycle cost for each vehicle? Based on life-time cost, which minivan would you recommend?

b) What is the cross-over point in years

c) Starting from part a, what happens to total life cycle cost for each vehicle if due to recent war in Ukraine, gasoline prices rise from $3.65 to 5.50 per gallon. Which car will be the more economical now? Show your work.

(Show all your answers in detail - also need excel)