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lifetime cost

At what price /gas ($/gal) will the life time cost of these 2 vehicles be the same with a MARR of 5%? Ignore inflation and keep all other O&M cost the same.

Civic Hybrid Honda Insight
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Cost Price 13000 20000
Miles /gal 32 49
Miles /yr 12000 12000
Years owned 8 8
Salvage value at 8 yr 2000 3500

Please, use MS Excel for the results.

Solution Summary

At what price /gas ($/gal) will the lifetime cost of these 2 vehicles be the same with a MARR of 5%?

$2.19