Question
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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