| Salsa Prius Hybrid Purchasing & Operating Economics | |||||||||||||||||
| 2006 or 2007 Tax Year | Data* | ||||||||||||||||
| MSRP of hybrid electric vehicle (HEV) | $29,237 | ||||||||||||||||
| MSRP of comparable non-HEV | $26,000 | ||||||||||||||||
| Bargained-down savings on non-HEV | $2,500 | Consumer-Entered Data | |||||||||||||||
| Out-of-pocket cost of purchasing a HEV | $5,737 | $5,737 | |||||||||||||||
| State income tax credit | $0 | Explanatory Data or Results | |||||||||||||||
| Federal income tax credit for Prius | $600 | ||||||||||||||||
| Estimated miles driven annually | 11,534 | Profitability Results | |||||||||||||||
| Cost of 1 gallon of gasoline (estimated) | $2.48 | ||||||||||||||||
| Estimated overall EPA mileage of HEV (mpg) | 54.9 | *All dollar amounts in US$ | |||||||||||||||
| Estimated overall EPA mileage of non-HEV (mpg) | 21.4 | ||||||||||||||||
| Annual cost of fuel for HEV | $520 | Deployed - storage | |||||||||||||||
| Annual cost of fuel for non-HEV | $1,335 | ||||||||||||||||
| Annual fuel cost savings of operating a HEV | $815 | ||||||||||||||||
| Estimated cost of oil change | $25 | ||||||||||||||||
| Recommended miles between oil change (HEV) | 5,000 | ||||||||||||||||
| Recommended miles between oil change (non-HEV) | 3,000 | ||||||||||||||||
| Estimated annual rate of fuel cost increases | 10% | ||||||||||||||||
| Estimated annual general inflation rate | 3% | ||||||||||||||||
| Car loan interest rate | 4.2% | ||||||||||||||||
| Car loan term (whole years) | 5 | ||||||||||||||||
| Cost of capital (aka "discount rate") | 10% | ||||||||||||||||
| Year | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | ||||||
| Avg Fuel Costs | $ 2.30 | $ 2.64 | |||||||||||||||
| Fuel Cost Increase | 15% | 15% | |||||||||||||||
| Investment Analysis | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||||||
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||
| Out-of-pocket cost (investment) | -$5,737 | ||||||||||||||||
| Annual fuel savings | $945 | $1,669 | $850 | $0 | $935 | $1,029 | $1,132 | $1,245 | $1,370 | $1,507 | $1,658 | ||||||
| Federal &/or state tax incentives | $600 | ||||||||||||||||
| Annual oil change savings | $38 | $40 | $41 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ||||||
| Finance charges | -$241 | -$241 | -$241 | -$241 | -$241 | ||||||||||||
| Battery replacement | Warrantied for at least 8 yrs ($2888 replacement cost) | ||||||||||||||||
| Annual savings | -$4,754 | $2,068 | $649 | -$241 | $694 | $788 | $1,132 | $1,245 | $1,370 | $1,507 | $1,658 | ||||||
| Cash flow | -$4,754 | -$2,686 | -$2,036 | -$2,277 | -$1,583 | -$795 | $337 | $1,582 | $2,952 | $4,459 | $6,117 | ||||||
| 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | |||||||
| Annual return on investment | 36% | 11% | -4% | 12% | 14% | 20% | 22% | 24% | 26% | 29% | |||||||
| Average return on investment | 19% | ||||||||||||||||
| Net present value | $1,491 | ||||||||||||||||
| Internal rate of return | 17% | ||||||||||||||||
| Simple payback (deduce from cash flow; the years to turn and remain positive) | 5 | ||||||||||||||||
| Based on analysis from Andy Kerr Article, Cost Effective Hybrids, June/July 2006, Home Power Magazine | |||||||||||||||||