Wendy decides to purchase of a new Honda Civic. Being concerned about environmental issues she...
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Wendy decides to purchase of a new Honda Civic. Being concerned about environmental issues she is leaning towards a Honda Civic Hybrid rather than a complete gasoline-powered LX model. Nevertheless she wants to to determine if there's an economic justification for purchasing the hybrid, which cost $3,500 more than the LX. Based on a mix of city and highway driving she predicts the average gas mileage of the car is 40 miles per gallon for the hybrid and 30 miles per gallon for the LX. Wendy also anticipates she'll be driving an average of 12000 miles per year and gasoline will cost an average of $2.50 per gallon over the next four years. She also plans to replace whichever car she purchases at the end of the year when the resale values of the hybrid and Alex are predicted to be 12000 and 8500 respectively. determine the net present value of the incremental investment associated with purchasing the hybrid at 10% time value of money.
time is 4 years
cate a ne disadvantage of applicable QUESTION 3 Wendy decided to purchase a new Honda Cic. Being concerned about environmental issues she is leaning toward a Honda Civic Hybrid rather than the completelytasoline powered LX model. Nevertheless, she wants to determine if there is an economic justification for purchasing the Hybrid, which costs 13 500 more than the UX Based on a mix of city and highway driving the predicts that the averaeecas mileage of each car is 60 MPG for the Hybrid and 30 MPG for the UX Wendy also anticostes she will drive an average of 12,000 miles per wear and that gasoline will cost an average of $2.50 per gallon over the next four years. She also plans to replace whichever car she purchases at the end of four years when the resale values of the Hybrid and the LX are predicted to be $12.000 and 58,500 respectively Determine the net present value of the incremental investment associated with purchasing the Hybrid at a ten percent time value of Use a negative sign with your answer, if appropriate. Round answer to the nearest whole number QUESTION 4 At the beginning of October, Comfy Cushions had 2.200 cushions and 13,500 pounds of raw materials on hand Budgeted sales for the Click Save and submit to and submit. Click Save All Anesto e allannues. Save As A sGet Answers to Unlimited Questions
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