Cal Poly Pomona EGR 403 - Hybrid vs. Gas - D500859

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Cal Poly Pomona EGR 403 - Hybrid vs. Gas

School name California State Polytechnic University, Pomona

Course Egr 403- Asset Allocation in Technical Decision Making

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Hybrid vs. Gas Which is the best option?AssumptionsScenarioHonda Civic Sedan DX (Hybrid)Honda Civic Sedan ExAnnual Cash Flow Analysis ResultsSensitivity: Avg. Cost of FuelSensitivity: Miles Driven/YrSensitivity: Civic Hybrid Maintenance Cost/YrSensitivity ResultsResourcesHybrid vs. GasHybrid vs. GasWhich is the best option?Which is the best option?Team 10Team 10Daniel Cerna Daniel Cerna Juan Gaspar Juan Gaspar Duane San Juan Duane San Juan Sadia Tarannum Sadia TarannumAssumptionsAssumptionsAnalysis Period of 5 YearsAnalysis Period of 5 Years5 Year Loan at 6.50% APR5 Year Loan at 6.50% APRNo Down PaymentNo Down PaymentConstant Maintenance Cost for 5 YearsConstant Maintenance Cost for 5 Years15,000 Miles Driven/Yr15,000 Miles Driven/YrMiles Driven are 50% City & 50% HighwayMiles Driven are 50% City & 50% HighwayStandard Driving ConditionsStandard Driving ConditionsNot Reselling Car After 5 YearsNot Reselling Car After 5 YearsScenarioScenarioFor personal transportation is it best For personal transportation is it best to purchase a vehicle that runs on :to purchase a vehicle that runs on :Hybrid – 2005 Honda Civic HybridHybrid – 2005 Honda Civic HybridGasoline – 2005 Honda CivicGasoline – 2005 Honda CivicHonda Civic Sedan DX (Hybrid)Honda Civic Sedan DX (Hybrid)Purchase Price: $21,450Purchase Price: $21,450Variable Speed Variable Speed AutomaticAutomaticMPG (City): 48MPG (City): 48MPG (Highway): 47MPG (Highway): 47Honda Civic Sedan Ex Honda Civic Sedan Ex Purchase Price: Purchase Price: $19,310$19,3104 Speed Automatic4 Speed AutomaticMPG (City): 31MPG (City): 31MPG (Highway): 38MPG (Highway): 38Annual Cash Flow Analysis ResultsAnnual Cash Flow Analysis ResultsEUAC of Civic Hybrid = $7,901.80EUAC of Civic Hybrid = $7,901.80EUAC of Civic EX (Gas) = $7,737.29EUAC of Civic EX (Gas) = $7,737.29EUAC of Civic Hybrid is greater than EUAC of Civic Hybrid is greater than EUAC of Civic EX (Gas)EUAC of Civic EX (Gas)Therefore, Choose Civic EX (Gas)Therefore, Choose Civic EX (Gas)Sensitivity: Avg. Cost of FuelSensitivity: Avg. Cost of Fuel$3.98Sensitivity: Miles Driven/YrSensitivity: Miles Driven/Yr22,541 MilesSensitivity: Civic Hybrid Maintenance Cost/YrSensitivity: Civic Hybrid Maintenance Cost/Yr$365.11Sensitivity ResultsSensitivity ResultsLowest EUAC – Honda Civic ExLowest EUAC – Honda Civic ExHybrid fuel savings does not offset higher Hybrid fuel savings does not offset higher purchase pricepurchase priceCases where Civic Hybrid costs less:Cases where Civic Hybrid costs less:Avg. Cost of Fuel Over $3.98Avg. Cost of Fuel Over $3.98Miles Driven/Yr Over 22,541 MilesMiles Driven/Yr Over 22,541 MilesCivic Hybrid Maintenance Cost/Yr Below Civic Hybrid Maintenance Cost/Yr Below $365.11$365.11ResourcesResourcesHybrid Vehicle Cost Calculator Tool: Hybrid Vehicle Cost Calculator Tool: http://fcvt.nrel.gov/cleancities/hev/calculator/singhttp://fcvt.nrel.gov/cleancities/hev/calculator/single.phple.phpCalculates Present Value of Annuity with Calculates Present Value of Annuity with Interpretation:Interpretation:Investopedia.com Investopedia.com Mortgage Payment Calculator:Mortgage Payment Calculator:Connel.netConnel.netLoan Payment Calculator:Loan Payment

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