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Question 4. (25 marks) Hybrid cars are touted as a green alternative; however, the financial aspects of hybrid ownership are not as clear. Consider the

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Question 4. (25 marks) Hybrid cars are touted as a "green" alternative; however, the financial aspects of hybrid ownership are not as clear. Consider the 2012 Toyota Earl, which had a list price of $7,140 (including tax consequences) more than the comparable Toyota Eastern. Additionally, the annual ownership costs (other than fuel) for Earl were expected to be $510 more than Eastern. The EPA mileage estimate was 31 mpg for Earl and 22 mpg for Eastern . Assume that gasoline costs $4.15 per gallon and you plan to keep either car for five years. How many miles per year would you need to drive to make the decision to buy Earl worthwhile, ignoring the time value of money? If you drive 16,500 miles per year and keep either car for five years, what price per gallon would make the decision to buy Earl worthwhile, ignoring the time value of money

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