Please give me answer of B,C and D . 21.47 and 48575.97 is WRONG. Hybrid cars ar

Question

Please give me answer of B,C and D. 21.47 and 48575.97 is WRONG.

Hybrid cars are touted as a "green" alternative; however, the financial aspects of hybrid ownership are not as clear. Consider the 2010 Edsel 550h. which had a list price of dollar 5,800 (including tax consequences) more than the comparable Edsel 550. Additionally, the annual ownership costs (other than fuel) for the hybrid were expected to be dollar 500 more than the traditional sedan. The EPA mileage estimate was 29 mpg for the hybrid and 21 mpg for the traditional sedan. Assume that gasoline costs dollar 3.95 per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile, ignoring the time value of money? (Do not round intermediate calculations and round your final answer to nearest whole number, (e.g., 32)) Miles per year 28265.82 If you drive 16.500 miles per year and keep either car for six years, what price per gallon would make the decision to buy the hybrid worthwhile, ignoring the time value of money? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16)) Price per gallon dollar 21.47 Gasoline costs dollar 3.95 per gallon and you plan to keep either car for six years. How many miles per year would you need to drive to make the decision to buy the hybrid worthwhile? Assume the appropriate interest rate is 10 percent and all cash flows occur at the end of the year. (Do not round intermediate calculations and round your final answer to the nearest whole number, (e.g., 32)) Miles per year 48575.97 If you drive 16.500 miles per year and keep either car for six years, what price per gallon would make the decision to buy the hybrid worthwhile? Assume the appropriate interest rate is 10 percent and all cash flows occur at the end of the year (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16)) Price per gallon dollar

Explanation / Answer

(b)Total additional cost of hybrid car=5800+6*500=8800

Cost differencial beacuse of fuel in gallon =(6500*6/21)-(6500*6/29)=512.31

So 512.31 A (where A is the price of fuel per gallon)=8800

So A=8800/512.31=17.17

(c) The PV of additional expenses=5500+500/(1.10^1)+500/(1.10^2)+500/(1.10^3)+500/(1.10^4)+500/(1.10^5)+500/(1.10^6)=7677.63

Cost benefit per mile differencial=3.95/(29-21)=0.49

So the miles that will cover the extra cost =7677.63/0.49=15668.63 miles

So miles per year=15668.63/6=2611.43 miles

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