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Score: 0 of 6 pts 11 of 16 (15 complete) HW Score: 64.29%, 18 of 28 pts Problem

ID: 389779 • Letter: S

Question

Score: 0 of 6 pts 11 of 16 (15 complete) HW Score: 64.29%, 18 of 28 pts Problem S5.11 Question Help A Southern Georgia schocl district is considering ordering 50 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 24% compared o ga o in powered buses an 89 compared o diesel ones. But they come at a prem um $92,000 ora propane m e STE 00 more than e die o va 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 schcol 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 $ 244,880. (Round your response to the nearest dollar) The total cost of using one dlesel-fueled bus durin ts life cycle is .Round your response to the nearest dolar)

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 $

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