Calculating roi


1. Cash for Clunkers:
A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year. A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.

The government claims 700,000 vehicles were exchanged so that's 224 million gallons saved per year.

That equates to a bit over 5 million barrels of oil.

To put this perspective, 5 million barrels is about 5 hours worth of US consumption. More importantly, 5 million barrels of oil at $95 per barrel costs about $475 million dollars. The government PAID $3 BILLION to save $475 million.

What is the ROI?
Do you think it was worth it?

 

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Finance Basics: Calculating roi
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