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Helen Ross considers herself economically savvy and a friend of environment. She is currently looking for a new car and has narrowed her options to

Helen Ross considers herself economically savvy and a friend of environment. She is currently looking for a new car and has narrowed her options to two models (hybrid and gas operated) of her favorite make. Details of her considerations for the two models are shown in Table 2.

Table 2

Parameters considered

Vehicle Options

Hybrid

Gas

Vehicle Purchase Cost

17,000

$19,000

Vehicle Operating Cost per Km

$0.12

$0.09

Useful Life of Vehicle

15 years

15 years

Kilometers driven per year

14,000

14,000

Kilometers driven per Litre

32

35

Average fuel price per litre

$3.75

$3.75

34) Using the information in Table 2, if the price of gasoline rose to $4.00 per litre select the correct answer from the following:

Question 34 options:

The two models would render Helen the same benefit regardless of the change in gas price

The two models would render Helen the same benefit after about 2.5 years of usage

The two models would render Helen the same benefit after about 3.5 years of usage

The two models would render Helen the same benefit after about 4.5 years of usage

Helen would benefit more from the hybrid model because of the hike in gas price

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