Team 3 Equipment Comparison. Team Members Monica Leong (Organizer) Monica Leong (Organizer) Sewit Jemal (Summarizer) Sewit Jemal (Summarizer) Ryan Hernandez.

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Presentation transcript:

Team 3 Equipment Comparison

Team Members Monica Leong (Organizer) Monica Leong (Organizer) Sewit Jemal (Summarizer) Sewit Jemal (Summarizer) Ryan Hernandez (Techie) Ryan Hernandez (Techie) Darnell Camanzo (Techie) Darnell Camanzo (Techie)

Project Project Which car costs less over the period of 5 years ? Which car costs less over the period of 5 years ? – 2006 Honda Civic Hybrid Sedan – 2006 Honda S2000 Roadster

Approach We will apply the Present Worth Analysis to determine which car is cheaper today by comparing the following: We will apply the Present Worth Analysis to determine which car is cheaper today by comparing the following: ► Price of the vehicles ► Insurance Cost ► Maintenance Cost ► Fuel Economy ► Salvage Value

Prices of the vehicles The base price The base price Estimated Monthly Payments at 7% APR for 5 years and 20% Down Payment Estimated Monthly Payments at 7% APR for 5 years and 20% Down Payment Hybridvs. S2000 $22,400 $34,600 $354.04$ $354.04$548.10

Insurance Assuming a clear driver’s record we obtained these insurance quotes: obtained these insurance quotes: $1172/ year for the Hybrid $1172/ year for the Hybrid $1720/ year for the S2000 $1720/ year for the S2000

Maintenance Hybrid The maintenance cost The maintenance cost for the first 10,000 for the first 10,000 miles is $ S2000 The maintenance cost The maintenance cost for the first 3,725 miles for the first 3,725 miles is $41.20

Fuel Economy City City Highway Highway Fuel Capacity Fuel Capacity Fuel Fuel Fuel Price as of this date 11/24/2005 Fuel Price as of this date 11/24/2005 Hybridvs.S mpg20 mpg 51 mpg25 mpg 12.3 gal13.2 gal RegularPremium $2.33/gal$2.53/gal

Salvage Value The average resale or salvage value of Honda cars after 5 years is about 70% of the original price. Therefore Hybrid will resell for about $15,680 Hybrid will resell for about $15,680 S2000 will resell for about $24,220 S2000 will resell for about $24,220

Conclusion The Hybrid is $12,000 less than the S2000 The Hybrid is $12,000 less than the S2000 The Hybrid yielded lesser cost requirement than the S2000 The Hybrid yielded lesser cost requirement than the S2000 The Hybrid gets more mpg than S2000 The Hybrid gets more mpg than S2000 The Present Worth of the S2000 is $37, The Present Worth of the Hybrid is The Present Worth of the Hybrid is $30,492.98

Resources used Internet