Equipment Comparison

1
Team 3

• Equipment Comparison

2
Team Members

• Monica Leong (Organizer)
• Sewit Jemal (Summarizer)
• Ryan Hernandez (Techie)
• Darnell Camanzo (Techie)

3
Project

• Which car costs less over the period of 5 years ?
• 2006 Honda Civic Hybrid Sedan
• 2006 Honda S2000 Roadster

4
Approach

• We will apply the Present Worth Analysis to
  determine which car is cheaper today by
  comparing the following
• Price of the vehicles
• Insurance Cost
• Maintenance Cost
• Fuel Economy
• Salvage Value

5
Prices of the vehicles

• Hybrid vs. S2000
• 22,400 34,600
• 354.04 548.10

• The base price
• Estimated Monthly Payments at 7 APR for 5 years
  and 20 Down Payment

6
Insurance

• Assuming a clear drivers record we
• obtained these insurance quotes
• 1172/ year for the Hybrid
• 1720/ year for the S2000

7
Maintenance

• Hybrid
• The maintenance cost
• for the first 10,000
• miles is 104.53

• S2000
• The maintenance cost
• for the first 3,725 miles
• is 41.20

8
Fuel Economy

• City
• Highway
• Fuel Capacity
• Fuel
• Fuel Price as of this date 11/24/2005

• Hybrid vs. S2000
• 49 mpg 20 mpg
• 51 mpg 25 mpg
• 12.3 gal 13.2 gal
• Regular Premium
• 2.33/gal 2.53/gal

9
Salvage Value

• The average resale or salvage value of Honda cars
  after 5 years is about 70 of the original price.
• Therefore
• Hybrid will resell for about 15,680
• S2000 will resell for about 24,220

10
Conclusion

• The Hybrid is 12,000 less than the S2000
• The Hybrid yielded lesser cost requirement than
  the S2000
• The Hybrid gets more mpg than S2000
• The Present Worth of the S2000 is 37,724.46
• The Present Worth of the Hybrid is 30,492.98

11
Resources used

• Internet
• www.21century.com
• www.edmonds.com
• www.honda.com