10

383 views

Published on

  • Be the first to comment

  • Be the first to like this

10

  1. 1. Hybrid vs. Gas Which is the best option? Team 10 Daniel Cerna Juan Gaspar Duane San Juan Sadia Tarannum
  2. 2. Assumptions <ul><li>Analysis Period of 5 Years </li></ul><ul><li>5 Year Loan at 6.50% APR </li></ul><ul><li>No Down Payment </li></ul><ul><li>Constant Maintenance Cost for 5 Years </li></ul><ul><li>15,000 Miles Driven/Yr </li></ul><ul><li>Miles Driven are 50% City & 50% Highway </li></ul><ul><li>Standard Driving Conditions </li></ul><ul><li>Not Reselling Car After 5 Years </li></ul>
  3. 3. Scenario <ul><li>For personal transportation is it best to purchase a vehicle that runs on : </li></ul><ul><ul><li>Hybrid – 2005 Honda Civic Hybrid </li></ul></ul><ul><ul><li>Gasoline – 2005 Honda Civic </li></ul></ul>
  4. 4. Honda Civic Sedan DX (Hybrid) <ul><li>Purchase Price: $21,450 </li></ul><ul><li>Variable Speed Automatic </li></ul><ul><li>MPG (City): 48 </li></ul><ul><li>MPG (Highway): 47 </li></ul>
  5. 5. Honda Civic Sedan Ex <ul><li>Purchase Price: $19,310 </li></ul><ul><li>4 Speed Automatic </li></ul><ul><li>MPG (City): 31 </li></ul><ul><li>MPG (Highway): 38 </li></ul>
  6. 6. Annual Cash Flow Analysis Results <ul><li>EUAC of Civic Hybrid = $7,901.80 </li></ul><ul><li>EUAC of Civic EX (Gas) = $7,737.29 </li></ul><ul><li>EUAC of Civic Hybrid is greater than EUAC of Civic EX (Gas) </li></ul><ul><li>Therefore, Choose Civic EX (Gas) </li></ul>
  7. 7. Sensitivity: Avg. Cost of Fuel $3.98
  8. 8. Sensitivity: Miles Driven/Yr 22,541 Miles
  9. 9. Sensitivity: Civic Hybrid Maintenance Cost/Yr $365.11
  10. 10. Sensitivity Results <ul><li>Lowest EUAC – Honda Civic Ex </li></ul><ul><li>Hybrid fuel savings does not offset higher purchase price </li></ul><ul><li>Cases where Civic Hybrid costs less: </li></ul><ul><ul><li>Avg. Cost of Fuel Over $3.98 </li></ul></ul><ul><ul><li>Miles Driven/Yr Over 22,541 Miles </li></ul></ul><ul><ul><li>Civic Hybrid Maintenance Cost/Yr Below $365.11 </li></ul></ul>
  11. 11. Resources <ul><li>Hybrid Vehicle Cost Calculator Tool: http://fcvt.nrel.gov/cleancities/hev/calculator/single.php </li></ul><ul><li>Calculates Present Value of Annuity with Interpretation: </li></ul><ul><ul><li>Investopedia.com </li></ul></ul><ul><li>Mortgage Payment Calculator: </li></ul><ul><ul><li>Connel.net </li></ul></ul><ul><li>Loan Payment Calculator: </li></ul><ul><ul><li>Bankrate.com </li></ul></ul>

×