Question
You are considering the purchase of a new car and are weighing the choice between a Toyota Camry Hybrid sedan (which assists a gasoline engine
You are considering the purchase of a new car and are weighing the choice between a Toyota Camry Hybrid sedan (which assists a gasoline engine with an electric motor powered via regenerative braking) and the Toyota Camry Non-Hybrid sedan (just a standard gasoline engine). The non-hybrid version costs $28,000 with a fuel economy of 20 miles per gallon in city driving and 30 miles per gallon in highway driving. The hybrid version of the car costs $31,000 with a fuel economy of 42 miles per gallon in city driving and 40 miles per gallon in highway driving. You plan to keep the car for 10 years. Your annual mileage is uncertain; you only know that each year you will drive between 9,000 and 13,000 miles. Based on your past driving patterns, 60% of your miles are city driving and 40% of your miles are highway driving. Assume that the gas price remains constant at $2.19 per gallon throughout the 10 years.
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