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Hi! Please help with this finance question, thanks! In 2019, you bought a hybrid car to replace your old gas guzzler. Your hybrid (used) cost

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Hi! Please help with this finance question, thanks!

image text in transcribed
In 2019, you bought a hybrid car to replace your old gas guzzler. Your hybrid (used) cost you $13,000, and gets 48 mpg city/45 mpg highway. Your old car's mileage was 25 mpg city/30 mpg highway. Gas costs $3.15/gallon, and you drive 12,000 miles per year. You sold your car for $1,900. You typically drive 74 percent of your miles on the highway and 26 percent in the city. c) Use the simple payback equation to calculate the number of years it will take to recover the cost of your investment. [5 points] d) Now assume that California levies a carbon tax. Carbon dioxide emissions are priced at $50/ton, and paid at annual inspections. Every gallon of gas burned creates 8,887 grams of C02. What is the new payback period for the new car? [5 points]

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