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1 6-24. Are you thinking of bypassing a gasoline fueled car in favor of a hybrid (gasoline and electric) automobile? Lets 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 (mpglof fuel. The alternative hybrid vehicle sells for $25,000and averages 46 mpg. The resale value of the hybrid car is $2,000 more than that of the gasoline-only car after five years of anticipated ownership. If you drive 15,000 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? (6.4)
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