Assessment for Lotus Rental Car's CFO on Feasibility of Alternative Fuel Vehicles COMM 215
Assessment for Lotus Rental Car's CFO on Feasibility of Alternative Fuel Vehicles The idea behind the Alternative Fuel Vehicle (AFV) was intended to reduce emissions (generated by burning fossil fuels) that are polluting our air and depleting the ozone. AFV’s also help reduce our dependence on foreign oil (mostly from a highly unstable region of the world). Prior to a decision being made whether or not to alternative fuel vehicles to the fleet of Lotus Rental Cars, we most determine if alternative fuel vehicles are actually a feasible choice. To do this we must first have an understanding of alternative fuel vehicles. Through our research, we have discovered that there are a growing number of alternative fuel vehicles on the road today. Alternative fuel vehicles are defined as any vehicle that can operate on a fuel or power source other than diesel or gasoline. These vehicles come in many different forms, from small commuter cars to larger commercial vehicles. The use of these alternative fuel sources greatly reduces out countries dependency on foreign oil and reduces air pollution caused by CO2 emissions (Gable & Gable, 2009).
The vehicles currently available at Lotus Car Rental, like the majority of the other cars on the road, run on gasoline or diesel, but the cost of petroleum products are constantly raising. As of today, the price of West Texas crude oil is $107 a barrel (Davies, July). The high cost of crude oil directly correlates to the high cost of the refined petroleum that we use to fuel our vehicles such as diesel and gasoline. This means the day to day cost of driving a car is rising every day and the costumers of Lotus Car Rental have to deal with this rising cost of fuel when the only vehicles offered are gasoline or diesel powered. Through our research, we have reached the conclusion that Lotuc Car Rental should make an initial investment of a...
References: Davies, R. (July 11, 2013). Oil Prices Rise, Again, Now $107 a Barrel. Retrieved from http://abcnews.go.com/blogs/business/2013/07/oil-prices-rise-again-now-107-a-barrel/
Gable, C., & Gable, S. (2009, March). Top 10 Reasons to Make the Switch to Alternative Fuels. Retrieved from http://alternativefuels.about.com/od/alternativefuels101/tp/toptenessential.htm
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