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Payback time for hybrid vehicle: Let's find the payback time for a purchasing a 20201 Toyota Highlander Hybrid compared to purchasing a Toyota Highlander. The
Payback time for hybrid vehicle: Let's find the payback time for a purchasing a 20201 Toyota Highlander Hybrid compared to purchasing a Toyota Highlander. The Highlander Hybrid LE has an MSRP of $41,855 while the Highlander XLE has an MSRP of $40,405. Consider MSRP to be the purchase price. The Highlander Hybrid XLE has a combined fuel economy of 36 mpg while the Highlander XLE's combined fuel economy is only 24 mpg. If you drive 12,500 miles per year and gasoline costs $3.25/gallon, How many years will it take to pay off the initial additional cost of the hybrid with fuel savings? (10 points)
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