| Driftwood Prius Hybrid Purchasing & Operating Economics | |||||||||||||||||
| 2006 or 2007 Tax Year | Data* | ||||||||||||||||
| MSRP of hybrid electric vehicle (HEV) | $25,228 | ||||||||||||||||
| MSRP of comparable non-HEV | $22,000 | ||||||||||||||||
| Bargained-down savings on non-HEV | $2,500 | Consumer-Entered Data | |||||||||||||||
| Out-of-pocket cost of purchasing a HEV | $5,728 | $5,728 | |||||||||||||||
| State income tax credit | $0 | Explanatory Data or Results | |||||||||||||||
| Federal income tax credit for Prius | $600 | ||||||||||||||||
| Estimated miles driven annually | 17,276 | Profitability Results | |||||||||||||||
| Cost of 1 gallon of gasoline (estimated) | $2.50 | ||||||||||||||||
| Estimated overall EPA mileage of HEV (mpg) | 49.6 | *All dollar amounts in US$ | |||||||||||||||
| Estimated overall EPA mileage of non-HEV (mpg) | 21.4 | ||||||||||||||||
| Annual cost of fuel for HEV | $870 | Deployed - Vehicle in use | |||||||||||||||
| Annual cost of fuel for non-HEV | $2,017 | ||||||||||||||||
| Annual fuel cost savings of operating a HEV | $1,146 | ||||||||||||||||
| 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) | -$5,728 | ||||||||||||||||
| Annual fuel savings | $1,032 | $1,398 | $1,384 | $1,536 | $1,690 | $1,859 | $2,045 | $2,250 | $2,475 | $2,723 | $2,995 | ||||||
| Federal &/or state tax incentives | $600 | ||||||||||||||||
| Annual oil change savings | $58 | $59 | $61 | $63 | $65 | $67 | $69 | $71 | $73 | $75 | $78 | ||||||
| Finance charges | -$241 | -$241 | -$241 | -$241 | -$241 | ||||||||||||
| Battery replacement | Warrantied for at least 8 yrs ($2888 replacement cost) | ||||||||||||||||
| Annual savings | -$4,638 | $1,817 | $1,205 | $1,358 | $1,514 | $1,685 | $2,114 | $2,321 | $2,548 | $2,798 | $3,073 | ||||||
| Cash flow | -$4,638 | -$2,821 | -$1,617 | -$258 | $1,256 | $2,941 | $5,055 | $7,376 | $9,924 | $12,722 | $15,795 | ||||||
| 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| Annual return on investment | 32% | 21% | 24% | 26% | 29% | 37% | 41% | 44% | 49% | 54% | |||||||
| Average return on investment | 36% | ||||||||||||||||
| Net present value | $6,413 | ||||||||||||||||
| Internal rate of return | 35% | ||||||||||||||||
| Simple payback (deduce from cash flow; the years to turn and remain positive) | 3 | ||||||||||||||||
| Based on analysis from Andy Kerr Article, Cost Effective Hybrids, June/July 2006, Home Power Magazine | |||||||||||||||||