Question
The conventional Touring Plus has an MSRP of $33,245, and the hybrid Touring Plus has an MSRP of $39,995. The conventional vehicle is estimated to
The conventional Touring Plus has an MSRP of $33,245, and the hybrid Touring Plus has an MSRP of $39,995. The conventional vehicle is estimated to average 22 MPG for an EPA mix of driving. The hybrid performance is estimated to be 30 mpg. Plot the time to regain the cost premium for the hybrid model versus the conventional model as a function of gasoline cost ranging from $2 to $5 per gallon. Assume the same driving pattern and total yearly miles as and that the cost of electricity is constant at $0.13/kWh. Use the fuel cost calculator provided by the Department of Energy on their web site: www.fueleconomy.gov. Assume that you are not eligible for the $7500 tax credit now being offered. How would eligibility for the credit alter the economics of the hybrid?
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