What is the present value of the fuel costs if you buy a Car 1(hybrid vehicle)? Similarly, what is the present value of the fuel costs if you buy Car 2(gas vehicle)? Assume a relevant rate of 6%. (Please think about what you have learned about the time value of money and consider the appropriate calculation to make here. Remember, you're not buying all the gas at the end of the car's life, but using the calculation from #4 as an annual cost.)

Car 1: No of gallons of gas used in a year = Miles per year/ Mile per gallon rating = 15000/53mpg = 283 gallons Average fuel cost for Car 1 = No of gallons of gas used in a year * Cost per gallon = 283* $3 = $849 per year Car 2: No of gallons of gas used in a year = Miles per year/ Mile per gallon rating = 15000/29mpg = 517 gallons Average fuel cost for Car 2 = No of gallons of gas used in a year * Cost per gallon = 517* $3 = $1,551 per year