help please! A Southern Georgia school district is considering ordering 58 propa
ID: 351015 • Letter: H
Question
help please!
A Southern Georgia school district is considering ordering 58 propane-fueled school buses. "They're healthier, they're cleaner burning, and they're much quieter than the diesel option," said a school administrator. Propane-powered buses also reduce greenhouse gasses by 25% compared to gasoline-powered buses and 4% compared to diesel ones. But they come at a premium $106,000 for a propane model, $16,000 more than the diesel equivalent. The propane bus operating cost (above and beyond fuel cost) is 20 cents/mile, compared to 30 cents for the diesel. Diesel fuel costs about $3/gallon in Georgia, about $1 more than propane. Bus mileage is 10 mpg for the propane model vs. 8 mpg for diesel. The life of a school bus in the district averages 11 years, and each bus travels an average of 37,000 miles per year because the district is so large and rural. Which bus is the better choice based on a life-cycle analysis?Explanation / Answer
Distance = 37000 miles
Cost of propane-fueled buses = (distance/mileage) *fuel cost + operating costs
= (37000/10) *2 + .20*37000
= 14800
Total cost = cost of bus + 14800 = 106,000 + 14800 = 120800
Cost of diesel-fueled buses = (distance/mileage) *fuel cost + operating costs
= (37000/8) *3 + .30*37000
= 13875 + 11100 = 24975
Total cost = cost of bus + 24975 = 90,000 + 24975 = 114975
Hence diesel fueled buses should be better.
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