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Hybrid cars are touted as a green alternative; however, the financial aspects of hybrid ownership are not as clear. Consider the 2020 Edsel 550h, which
Hybrid cars are touted as a "green" alternative; however, the financial aspects of hybrid ownership are not as clear. Consider the 2020 Edsel 550h, which had a list price of $5,600 (including tax consequences) more than the comparable gasoline-only Edsel 550. Additionally, the annual ownership costs (other than fuel) for the hybrid were expected to be $370 more than the traditional sedan. The EPA mileage estimate was 22 mpg for the hybrid and 14 mpg for the traditional sedan. a. Assume that gasoline costs $3.30 per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid
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