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mentioned that given how little most people drive in a year, they generally can save...

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Accounting

mentioned that given how little most people drive in a year, they generally can save money by buying a cheaper car than a Prius even if it has higher fuel consumption. Let's investigate that claim now, assuming a car similar to a Ford Fiesta. The capital cost to buy it is substantially lower, as are the yearly taxes and insurance, but the fuel consumption is about 50% higher. The car costs $14000 to buy. The capital charge factor is 0.23, the same as the Prius. The taxes, fees, and insurance each year total to $1400. You drive the car 20000 km/year, the same as the Prius. Variable operation and maintenance (VOM) costs add up to $0.019 per kilometer. Fuel costs $2.20 per liter. The car can travel 100 km on 7.4 L of fuel. Q1: What is the variable cost in dollars per kilometer? dollars per km Q2: Is the total levelized cost higher or lower than the Prius (in the video above) given these assumptions? Enter the word "higher" or "lower". If the numbers are within 10% of each other, enter the word "same

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