# Question: a new tesla model s costs dollar140169 which has a...

###### Question details

A new Tesla Model S costs $140,169 which has a range of 490km with a full charge on its 100kWh Lithium-ion battery and a 230,000km warranty. The Jaguar iPace costs $128,860 with has a range of 496km with a full charge on its 90kWh Lithium-ion battery and a 160,000 km warranty.

(a) Assuming that electricity costs $0.13 per kWh, calculate total cost equations as a function of Km’s driven for each of these cars. Identify the fixed and variable costs.

(b) How many kilometres do you have to drive before the two cars have the same total cost?

(c) You plan on keeping your car until the warranty expires, and while you are not certain of the resale value based on older model estimates you think the Tesla will be valued at $89,000 and the Jaguar $75,000. If your only concern is value, which car should you buy?