1. You are choosing from three types of automobiles: gasoline, hybrid electric and all electric cars, which cost $23000, $27000 and $36000 respectively. The fuel economy of the gasoline, hybrid and electric cars is 32 miles per gallon (mpg), 50 mpg and 3.7 miles per kiloWatthour respectively. Assume an annual driving of 10,000 miles per year, that the cars will be owned for 10 years and a discount rate of 10%. Assume gasoline price of $4.5 per gallon and electricity price of $0.15 per kWhr and the prices are constant over the life of the cars.
   1. What is the simple payback of the hybrid car relative to gas car?
   2. What is the simple payback of the electric car relative to gas car?
   3. What is the simple payback of the electric car relative to the hybrid car?
   4. What is the TLCC of each car?
   5. What is the levelized cost of driving (in units of $ per mile) for each car?
   6. If the salvage value for the three cars, i.e., their worth at the end of 10 years, are respectively, $6000, $12000 and $ 18000, what is the new TLCC? Does the choice change
   7. What is the levelized cost of driving based on part (c) ?
   8. The carbon dioxide emissions from gasoline use is 95 gram CO2/megajoule (a gallon of gasoline contains 121 megajoules) and that for electric cars is 0.5 kilogram CO2/kWh. If emissions are taxed at $50 per metric ton of CO2, what is the TLCC of each car now (include the salvage value). Does the choice change?