Short Project Description The course project is a comparison of two alternatives: a "regular" efficiency automobile of a certain size of your choice as compared to a "high efficiency version. You may compare models from a single auto product ine with both variations or, you may compare models from different auto model lines. However, in any case both alternatives must be in the same EPA class, e.g., compact. For each alternative, "regular" vs. "high efficiency", find the present value (cost) of acquiring and operating the vehicle for 10 years. Assume equal cash down payments for both alternatives no greater than 10% of either vehicle with the balance as a 5-year loan. The loan will be for a period less than the study period. You must correctly accommodate the fact that the loan repayments are monthly. Determine purchase price (investment) data from dealers or the internet. You must include all operating costs. These include insurance, fuel, maintenance, repair, and property taxes. This will require research to determine planned maintenance and probable repairs. Assume that the driving activity is 12,000 miles per year (4,000 city, 8,000 highway). For insurance, use $300,000 of coverage for liability and $500 deductible for Collison coverage. For property taxes, use your town of residence. Deliverables the problem statement and recommendation in summary at the front, followed by a detailed explanation and analysis. Short Project Description The course project is a comparison of two alternatives: a "regular" efficiency automobile of a certain size of your choice as compared to a "high efficiency version. You may compare models from a single auto product ine with both variations or, you may compare models from different auto model lines. However, in any case both alternatives must be in the same EPA class, e.g., compact. For each alternative, "regular" vs. "high efficiency", find the present value (cost) of acquiring and operating the vehicle for 10 years. Assume equal cash down payments for both alternatives no greater than 10% of either vehicle with the balance as a 5-year loan. The loan will be for a period less than the study period. You must correctly accommodate the fact that the loan repayments are monthly. Determine purchase price (investment) data from dealers or the internet. You must include all operating costs. These include insurance, fuel, maintenance, repair, and property taxes. This will require research to determine planned maintenance and probable repairs. Assume that the driving activity is 12,000 miles per year (4,000 city, 8,000 highway). For insurance, use $300,000 of coverage for liability and $500 deductible for Collison coverage. For property taxes, use your town of residence. Deliverables the problem statement and recommendation in summary at the front, followed by a detailed explanation and analysis
