Fuel efficient traditional combustion engine vehicle

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Reference no: EM132247420

You will evaluate the economic merit of purchasing a new car with electric motors, a new fuel efficient traditional combustion engine vehicle, and keeping the car you already own. If you do not own a car use the least valuable car owned by your nearest relative who owns a car. You will write a report and submit it with a spread sheet outlining your analysis. You must use present worth analysis. Your report must include the following;

1. Total cost of ownership for the three vehicle options.

2. Your time value of money with a reasonable justification for the interest rate chosen.

3. Your planning horizon (4-year minimum).

4. Initial Cost, Salvage Value, Maintenance, Gas, Insurance Cost, and Financing Cost.

5. Cash flow Diagram for each option.

6. Excel Spread Sheet with calculations and results.

7. Sources.The write up should explain how you determined the Initial Cost, Salvage Value, Maintenance, Gas, Insurance Cost, and Financing Cost, and cite your source.

Reference no: EM132247420

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