Hybrid vs. Gas Which is the best option? Hybrid vs. Gas Which is the best option? Team 10 Daniel Cerna Juan Gaspar Duane San Juan Sadia Tarannum

Assumptions  Analysis Period of 5 Years  5 Year Loan at 6.50% APR  No Down Payment  Constant Maintenance Cost for 5 Years  15,000 Miles Driven/Yr  Miles Driven are 50% City & 50% Highway  Standard Driving Conditions  Not Reselling Car After 5 Years

Scenario  For personal transportation is it best to purchase a vehicle that runs on :  Hybrid – 2005 Honda Civic Hybrid  Gasoline – 2005 Honda Civic

Honda Civic Sedan DX (Hybrid)  Purchase Price: $21,450  Variable Speed Automatic  MPG (City): 48  MPG (Highway): 47

Honda Civic Sedan Ex  Purchase Price: $19,310  4 Speed Automatic  MPG (City): 31  MPG (Highway): 38

Annual Cash Flow Analysis Results  EUAC of Civic Hybrid = $7,  EUAC of Civic EX (Gas) = $7,  EUAC of Civic Hybrid is greater than EUAC of Civic EX (Gas)  Therefore, Choose Civic EX (Gas)

Sensitivity: Avg. Cost of Fuel $3.98

Sensitivity: Miles Driven/Yr 22,541 Miles

Sensitivity: Civic Hybrid Maintenance Cost/Yr $365.11

Sensitivity Results  Lowest EUAC – Honda Civic Ex  Hybrid fuel savings does not offset higher purchase price  Cases where Civic Hybrid costs less:  Avg. Cost of Fuel Over $3.98  Miles Driven/Yr Over 22,541 Miles  Civic Hybrid Maintenance Cost/Yr Below $365.11

Resources  Hybrid Vehicle Cost Calculator Tool: e.php e.php e.php  Calculates Present Value of Annuity with Interpretation:  Investopedia.com  Mortgage Payment Calculator:  Connel.net  Loan Payment Calculator:  Bankrate.com