OBJECTIVE

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OBJECTIVE

• TO DETERMINE THE BREAKEVEN POINT WHERE THE
  EXTRA COST OF A HYBRID IS MET IN FUEL SAVINGS.
  
• TO COMPARE DIFFERENT VEHICLE TYPES TO DETERMINE
  WHAT VEHICLE IS MOST COST EFFECTIVE.
  
• TO ESTIMATE THE SAVINGS AFTER THE BREAKEVEN
  MILEAGE IS ATTAINED.

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VARIABLES TO CONSIDER

• THE VEHICLES COMPARED MUST BE OF THE SAME MAKE
  AND MODEL.
  
• SUV VS. SEDAN
• HIGHWAY MILES VS. CITY MILES
• HYBRID DRIVETRAIN MAINTENACE AND REPLACEMENT
  COSTS
  
• RESALE VALUES
• CARBON DIOXIDE EMISSIONS
• INSURANCE AND REGISTRATION COSTS

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SCENARIO 1

• COMPARISON OF A HONDA CIVIC HYBRID VS. HONDA
  CIVIC ICE.
  
• THIS WILL FULFILL THE MID SIZE SEDAN GROUP
  COMPARISON
  
• HIGHWAY VS. CITY ADVANTAGES

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SCENARIO 2

• COMPARISON OF A TOYOTA CAMRY HYBRID VS. TOYOTA
  CAMRY ICE.
  
• THIS WILL FULFILL THE FULL SIZE SEDAN GROUP
  COMPARISON
  
• HIGHWAY VS. CITY ADVANTAGES

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SCENARIO 3

• COMPARISON OF A CHEVY TAHOE HYBRID VS. TAHOE
  ICE.
  
• THIS WILL FULFILL THE SUV GROUP COMPARISON
• HIGHWAY VS. CITY ADVANTAGES

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COMPARISON METHODOLOGY

• WE WILL FORCAST THE NET PRESENT WORTH FROM
  CASH INFLOWS AND OUTFLOWS. RATE OF INFLATION WILL
  BE INCLUDED IN OUR ASSUMPTIONS. A BASELINE OF
  EXPECTED OWNERSHIP, IN YEARS, WILL BE CHOSEN TO
  COMPARE UPON. THE DRIVETRAIN WITH THE GREATEST
  NET PRESENT WORTH WILL BE THE MOST ECONOMICAL.
  CARBON DIOXIDE EMISSIONS WILL ALSO BE TAKEN INTO
  CONSIDERATION.

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RESOURCES

• MILEAGE EPA ESTIMATES
• COSTS MANUFACTURER ESTIMATES
• THIRD PARTY COMPARISONS
• CAR AND DRIVER
• POPULAR MECHANICS
• SALVAGE VALUE KELLY BLUE BOOK
• FUEL COSTS AVERAGE PRICE INCREASE WILL BE USED
  TO PREDICT FUTURE FUEL COSTS
  
• VEHICLE LICENSING AND INSURANCE WILL BE OBTAINED
  FROM RESPECTIVELY, DMV AND STATE FARM INSURANCE