Question 5 Partially correct Mark 3.75 out of 5.00 Flag question Payback period and NPV of a Cost Reduction ProposalDifferential Analysis Hermione decided to purchase a new automobile. Being concerned about environmental issues, she is leaning toward the there is an economic justification for purchasing the hybrid, which costs $2,200 more than the regular model. She has det 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.) (a) Determine the payback period of the incremental investment if gasoline costs $2.60 per gallon. 6.77 years (b) Assuming that Hermione plans to keep the car about six years and does not believe there will be a trade-in premium associate sign with your answer.) $ (600) x (C) Determine the cost of gasoline required for a payback period of four years. $ 4.4 per gallon (d) At $4.00 per gallon, determine the gas mileage required for a payback period of four years. 41.38 miles per gallon Check