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Given the data in Problem and an alternative hybrid vehicle with the specifications shown below:
a) What is the crossover point in miles?
b) Which vehicle is has the lowest cost until the crossover point is reached?
Vehicle Purchase Cost
$29,000
Vehicle Operating Cost per Mile
$0.08
Useful Life of Vehicle
10 years
Miles per year
18,000
Miles per gallon
40
Average fuel Price per gallon
$2.55
Problem - Hartley Auto Supply delivers parts to area auto service centers and is replacing its fleet of delivery vehicles. What is the total vehicle life-cycle cost of this gasoline engine truck given the information provided in the following table?
$25,000
$0.13
25
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