Katie is deciding whether to buy two different cars. One of the cars is a hybrid, while the

other is a standard model. She commutes a significant distance and calculates that the

hybrid would bring her fuel costs down per year by $$2,400/$year$,$ but the hybrid costs

$$10,000$ more. After having taken Professor Troost$$s class she has decided to calculate

the net present value of the hybrid$$s fuel savings to make her final decision. Using a

discount rate of $10$ percent and assuming that she keeps the car she purchases for five

years and the cars sell for the same price calculate the Net Present Value of the hybrid

and state which car she should buy.