Question

1. Select a car that has a traditional gas-engine model and a hybrid or electric model (i.e. Honda Civic). Make the assumption that the car will be driven for five years and the annual miles driven will be 12,000 miles. Then use ten years with the same 12,000 miles per year. Decide on an estimate for the cost per gallon of gas (i.e. truck will cost more than a compact car). 2. Research the initial cost of the traditional gas-engine and the hybrid or electric model. Be sure to include all the upfront cost including taxes. You do not need to do both hybrid or electric. You can pick one to compare against the gas-engine model. If you find a car that has all three model types and you compare all three, that will be extra credit. Then estimate the annual operating cost (fuel cost, insurance, maintenance, etc.). Calculate the present value of the cost of owning this vehicle with the gas-engine vs. the hybrid or electric model. Use a 6% discount rate. Then use a 10% discount rate. Does that make any difference? 3. Compare the cost of the two or three models. After comparing the costs, research the environmental issues associated with the two or three car models. Incorporate any sustainability issues on both sides. Formulate arguments to support your recommendation for the gas-engine or hybrid/electric model. Debate which model is more desirable for businesses to buy. Be specific in your reasons and cite your information sources.

Answer 1

ANSWER:-

Electric cars vs fuel cars..

Mahindra E20. Maruti ignis zeta petrol

Price. . 6.26 6.30

Engine. 19kW. 1.2ltr petrol

Transmission 2speed 5speed

Power 26bhp@350rpm. 82bhp@600rpm

Millage. Na. 20.89kmpl

Range

Pc/tank. 110km. 668km

Fuel cost. Rs.5/unit. Rs.67/l8tr

Cost/kmFull tank. Rs.50. Rs.2144

cost/12000km/year. Rs.0.45. Rs3.20

cost/60000km/5 year. Rs.5400. Rs38,400

cost120000km/10year. Rs.10800. Rd.76,800

total running cost

5years

With out battery

Replacement. 34500. 232000

Right now battery replacement cost is very high

Otherwise electric cars are better

Price

Tailpipe emissions is there in fuel cars which is causing harm to environment.

So from environment prospect obviously electric cars are better.

From cost perspective also electric cars are cheap.

If we included fuel cost also then gas modeled cars expensive than electric cars.

To refuel electric cars takes lot of time recharge and they give very low millage.

So for nearby destinations these cars may be considered and obviously better option.

But for long distance travelling keeping in mind the time required to refuel and millage covered obviously the traditional cars model are better.

2.There are cars varying from 2lakh to billions so without particular model particular brand particular fuel type particular country as different countries have different tax policies it won't be possible to estimate on cost.

Still if we consider annual operating cost

Fuel

Insurance

Maintenance

Fuel cost is higher in traditional gas cars and insurance and maintenance will not make much difference.

So annual operating cost would be higher in traditional model cars.

Discount will definitely impact the sale of new electric cars.

But for traditional cars impact won't be very high.

1.let's take car a as gas model and car b as an electric model.

Both Manufacturing cost is 4Lakh per annum

Insurance and maintenance is 50,000 for both the cars.

Fuel $0.06per mile

For 5years will cost=5*0.06*12000=$3600

For 10 years =10*0.06*12000=$7200

As fuel rates keeps on changing so we can't take this like it assumption is if fuel is fixed @this rate per year.

Still fuel cars are expensive.