Cash for clunkers and roi

Assignment Help Corporate Finance

Reference no: EM1344955

1. Cash for Clunkers:
A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year. A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.

The government claims 700,000 vehicles were exchanged so that's 224 million gallons saved per year.

That equates to a bit over 5 million barrels of oil.

To put this perspective, 5 million barrels is about 5 hours worth of US consumption. More importantly, 5 million barrels of oil at $95 per barrel costs about $475 million dollars. The government PAID $3 BILLION to save $475 million.

What is the ROI?
Do you think it was worth it?

Reference no: EM1344955

Questions Cloud

What is the spring constant k of this elastic cord : If the pump outlet is blocked and the handle pushed until internal length of the pump cylinder is 21, by how much does the air temperature rise? Suppose that no heat is lost.

Algorithm to produce a list of customers : Draw an algorithm to produce a list of customers from the Glad Rags Clothing Company's customer master file.

Find the third dark fringe regarding central bright fringe : You have just built a house out in the country and it comes to your attention that you need to install a lightning rod. Being naturally curious you ask a hardware salesperson how lightning rods work and they accurately tell you.

Examine successes-problems of multinational enterprises : Analyze the successes and problems of multinational enterprises (MNEs) in exploiting opportunities in emerging markets.

Cash for clunkers and roi : A clunker that travels 12,000 miles a year at fifteen mpg uses 800 gallons of gas a year. A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.

Which project would you select based on the npv : Evaluate the payback period for each project. Which project would you select based on the payback period and find the NPV for each project. Which project would you select based on the NPV?

Role of project managers and telecommunications managers : Describe in scholarly detail "technical jargon" and describe the role of project managers and telecommunications managers.

Would the next package make it into the truck : A freight company uses a compressed spring to shoot 1.7 kg packages up a 1m high frictionless ramp into a truck. The spring constant is 241 N/m and the spring is compressed 33 cm.

Solving financial management issues : Assume purchase orders are placed for twice as many shares of a stock as the number of shares offered for sale in a one-hour period. Explain the relationship between the reported trading price just before and just after that one-hour period.

User Account

All Pages