The Fed Government paid $4500 for any vehicle, irrespective of condition, if traded in on a new vehicle if the new unit's fuel-economy rating was 4 mpg or better, relative to the trade-in. Data in fact panel #1 were obtained from the Ford and Toyota corporate websites:

Fact Panel 1:

Focus S Prius two

MSRP: $16,500 $24,000

MPG(most favorable): 36 51

Replacement battery cost: $120 $2,800

Anticipated life: 6 years 8 years

Panel #2: usage assumptions; apply to both vehicles

Miles driven annually: 15,000

Service life: 10 years

Cost of gasoline: $2.50 per gallon

Using only the information given, give a cost/benefit analysis. Use the total cost of ownership across the entire service period as your decision rule. Make a recommendation as if you were suggesting an optimal purchase decision for a treasured family member.