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Business Course # Return to course My Subscriptions Angelica Gonzalez Payback Period and NPV of a Cost Reduction Proposal-- Differential Analysis Mary Zimmerman decided to
Business Course # Return to course My Subscriptions Angelica Gonzalez Payback Period and NPV of a Cost Reduction Proposal-- Differential Analysis Mary Zimmerman decided to purchase a new automobile. Being concerned about environmental issues, she is leaning toward the hybrid rather than the completely we four cylinder model. Nevertheless, as a new business school graduate, she wants to determine if there is an economistification for purchasing the hybrid, which costs $1.500 more than the regular VUE She has determined that city/highway combined gas mileage of the Green VUE and regular ve models are 27 and 23 miles per gallon respectively. Mary anticipates she will travel an average of 12,000 miles per year for the next several years. (Round your answers to two decimal places.) taj Determine the payback period of the incremental investment il gasoline costs $3.50 per gallon years (bl Assuming that Mary plans to keep the car five years and does not believe there will be a trade in premium associated with the hybrid model determine the net present value of the incremental investment at an eight percent time value of money. (Use a negative sign with your answer.) 5 to Determine the cost of gasoline required for a payback period of three years, per gallon $ (d) At $3.50 per gallon, determine the VUE Green combined gas mileage required for a payback period of three years miles per gallon Finish attempt Previous Save Answers 2:33 PM 129/202 - Prisen Hone End Pau Pope & 8 2
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