1. Team Members: Ramiro Alvarez Frank Gundran Minh Tran Matthew Zu

2.  We are undertaking the comparison of a Hybrid vs. Gasoline powered Tahoe to see which of the two is truly a smart buy. ▪ We will be assuming: ▪ 15,000 miles per year ▪ 5 years of ownership cost ▪ Both Vehicles $5000 as down payment ▪ $3.50 per gallon nominal gas price ▪ Gas Tahoe - $47,917, 15 mpg (conservative driving) ▪ Hybrid Tahoe - $50,031, 21 mpg ▪ Both vehicles were packaged to cost as similarly as possible.

3.  Scenario 1  Comparison with maintenance, repair, gas, and monthly payment—as the assumptions state.  Scenario 2  Comparison without maintenance and repair.  Scenario 3  Comparison change in gas price and including maintenance and repair.  Scenario 4  Comparison with changing annual mileage and still including maintenance and repair.

4. ▪ Monthly payment ▪ Maintenance and repairs ▪ Gas cost ▪ The unpredictable maintenance estimates make the plots difficult to predict, but if we remove these factors…

5. Scenario 2 Gas vs. Hybrid (w/o Maintenance & Repairs) Same down and monthly payment as before NO maintenance or repair costs Fuel is the only cost considered Here, without the erratic maintenance costs, it becomes clearer.

6. Scenario 3 Gas Fluctuation Analysis (w/ maintenance)  $3.50 was used as a nominal price (ignoring the current dip in oil prices).  The cost gap between the Gasoline and Hybrid versions increases along with a rise in fuel prices.  The Differences is a linear relationship, according to the Progression column. Gas PricesGasHybridDifferenceProgression $2.50$1,325$1,298$27 $3.00$1,366$1,328$39$12 $3.50$1,408$1,357$51$12 $4.00$1,449$1,387$62$12 $4.50$1,491$1,417$74$12

7.  Change in annual mileage changed price of gas  EUC price for hybrid always lower  As miles increase per year, EUC price increases

8.  Under our analysis, the Tahoe Hybrid is a better value, as far as ownership cost data exists for the first 5 years.  Based on vehicles packaged with similar options.  Based on conservative driving of the Gasoline Tahoe to yield an average of 15 mpg.

9.  www.chevrolet.com www.chevrolet.com  www.edmunds.com www.edmunds.com  www.autos.aol.com www.autos.aol.com