Using the idea of discounted future values does buying the


With the rise in gas prices, there has been an increased demand for hybrid cars. Honda Civic hybrid starting price is $24,000, while the regular Honda civic starting price is $22,000. There is a significant price distinction between the two cars. Over the life of the car, the hybrid will save the owner gasoline expenses. Using the idea of discounted future values, does buying the hybrid make sense? How long does one have to own the hybrid to reap the benefits? Be sure to detail your analysis.

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Finance Basics: Using the idea of discounted future values does buying the
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