Investment Choice: Electric vs Gasoline Cars

This lecture explores the decision-making process behind choosing between an electric car and a gasoline car, focusing on the financial aspects. The instructor discusses the costs involved in acquiring, running, and maintaining each type of vehicle over a five-year period, considering factors like subsidies, energy savings, resale value, and discount rates. The concept of discounting is introduced to account for the time value of money, impacting the comparison between the two options. The lecture also delves into the challenges of handling uncertainties, such as fluctuating resale prices and varying discount rates, in making informed financial decisions regarding vehicle purchases.