Electric Car

Extra Credit

Situation: You need a new car and are considering buying a Chevy Volt.  Does it make financial sense?  Compare the decision to buy a Volt with that of a comparable car.

1. Find a car comparable in size/quality to the Volt.  Note that comparable quality does not necessarily mean comparable price.

2. Do an analysis of your decision

a. include the difference in price, that's the initial outlay in comparing the decisions

b. now look at the savings/expenses (Show all assumptions)

i. how many gallons of gas do you save a year?  What is that worth?

ii. how many kwh of electricity do you need to recharge the car a year?  What does that cost?

iii. how long will you own the car?

c. do an NPV analysis