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Team 1: Truck Purchase Gas vs. Diesel

Team 1: Truck Purchase Gas vs. Diesel. David Beach – Fuel Research Chris Kaya – Estimated Maintenance Research Toan Le – Vehicle Licensing Fee Research Thomas Majich – Economic research & cost analysis Reuben Quist – Annual Insurance Cost Research. Gas Engine 6.8L V10 EFI.

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Team 1: Truck Purchase Gas vs. Diesel

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  1. Team 1: Truck Purchase Gas vs. Diesel David Beach – Fuel Research Chris Kaya – Estimated Maintenance Research Toan Le – Vehicle Licensing Fee Research Thomas Majich – Economic research & cost analysis Reuben Quist – Annual Insurance Cost Research

  2. Gas Engine 6.8L V10 EFI Diesel Engine 6.0L Power Stroke Turbo Diesel V8 Ford F-350 Reg. Cab 4x2 8’ vs.

  3. Units of Comparison • Gas Mileage & differences in fuel cost • Insurance Cost per year • Salvage Value (in 5 years) • Annual Estimated Maintenance • Annual Vehicle Licensing Fee

  4. Assumptions 1. Rate of Inflation = 3.27% per year 10 year Treasury = 4.22% 6 month Treasury = 0.95% 2. Annual Miles Driven = 35,000 mi. 15,000 Highway 20,000 Street

  5. Methodology Gather relevant cost information for year 1. Using assumed rate of inflation, forecast annual costs over the next five years. Calculate net present worth of all cash outflow and inflows. The engine (gas vs. diesel) that has the greatest net present worth will be chosen.

  6. Resources Gas Mileage: Visit Dealership Insurance Cost: contact insurance provider Estimated Annual Maintenance: visit dealership, research consumer information Fuel Costs: Average Southern California prices Vehicle Licensing Fee: based on DMV calculation Salvage Value: estimate percentage based on previous years

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