Payback Perlod and NPV of a Cost Reduction Proposal--Differential Analysis Hermione decided to purchase a new automobile. Being concerned about environmental issues, she is leaning toward the hybrid rather than the gasoline only model. Nevertheless, as a new business school graduate, she wants to determine if there is an economic justification for purchasing the hybrid, which costs 52,200 more than the regular model. She has determined that city highway combined gas mileage of the hybrid and regular models are 40 and 30 miles per gallon respectively. Hermione anticipates she will travel an average of 15,000 miles per year for the next several years, (Round your answers to two decimal places) (1) Determine the payback period of the incremental investment if gasoline costs $2.60 per gallon years Assuming that Hermione plans to keep the cae about sa years and does not believe there will be a trade in premium associated with the hybrid mode determine the nee present value of the incremental investment or 6% time value of money. (Use a negative sign with your answer) 5 1 Determine the cost of gasoline required for a paypack period of four years per gallon ( AL 34.00 per satan determine the gas mileage required for a payback period of four years miles per allon Check