Score: 0 of 6 pts 11 of 16 (10 complete) HW Score: 35.71%, 10 of 28 pts Problem

Question

Score: 0 of 6 pts 11 of 16 (10 complete) HW Score: 35.71%, 10 of 28 pts Problem S5.11 Question Help * A Southern Georgia schocl district is considering ordering 50 propane-fueled school buses. "Theyre healthier, they're cleaner burning, and theyre much quieter than the diesel option,"said a school administrator. Propane-powered buses also reduce greenhouse gasses by 24% compared o ga o ne-powered buses an 8% compared o dese ones. But he come at a premium 39 for a propane mode Si 00 more than the d ese r ent. The propane bus operating cost (above and beyond fuel cost) is 24 cents/mile, compared to 34 cents for the diesel. Diesel fuel costs about $3igallon in Georgia, about $1 more than propane. Bus mileage is 8 mpg for the propane model vs. 6 mpg for diesel. The life of a school bus in the district averages 12 years, and each bus travels an average of 26,000 miles per year because the district is so large and rural. Which bus is the better choice based on a life-cycle analysis? The total cost of using one propane-fueled bus during its life cycle is S (Round your responso to the nearost dollar.)

Explanation / Answer

Total Kms in 12 years = 12*26000 = 312000 miles

For Diesel bus:

Diesel cost = (total kms/mileage) *fuel cost

= (312000/6)*3 = 156000 $

Operating cost = total kms*cost per mile = 312000*.34 = 106080 $

Total cost = 156000 + 106080 + (92000-16000) = 338080 $

For Propane bus:

Fuel cost = (total kms/mileage) *fuel cost

= (312000/8) *2 = 78000 $

Operating cost = total kms*cost per mile = 312000*.24 = 74880 $

Total cost = 78000 + 74880 + 92000 = 244880 $

Hence Propane bus is a better choice.

Cost of using propane = 244880 $

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