Pick a vehicle that is offered as a hybrid and standard fuel model.

You will collect the following data from FuelEconomy.gov

The price of both models

Gas mileage of both vehicles $($Use the city, hwy or a weighted average based on your usage$)$

The mileage driven over the time $($no less than $7$ years and based on your usage$)$

The fuel savings $($your forecast for the next $7$ years$)$

A discount rate $(6\mathrm{.}5\%$ is recommended or your auto loan rate$)$

Determine the $ premium charged for the Hybrid option.

Determine the $ savings generated through fuel savings.

The hybrid will cost more but should save you money over time through fuel savings. Use the four measures above to evaluate the purchase of a hybrid.

Complete a Scenario Analysis where your base case is your expected variables. The best case includes higher values that are the realistic high bounds that you might expect while the worst case includes lower values that may occur.