What is the internal rate of return on the incremental


Are you thinking of bypassing a gasolinefueled car in favor of a hybrid? (gasoline and? electric) automobile?? Let's take a look at the relative economics of your possible choice. The? gasoline-fueled car sells for ?$20,000 and gets 25 miles per gallon? (mpg) of fuel. The alternative hybrid vehicle sells for ?$24,000 and averages 38.5 mpg. The resale value of the hybrid car is ?$1,500 more than that of the? gasoline-only car after five years of anticipated ownership. If you drive 16,000 miles per year and gasoline costs ?$4.00 per? gallon, what is the internal rate of return on the incremental investment in the hybrid? automobile?

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Financial Management: What is the internal rate of return on the incremental
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