Score: 0 of 6 pts 11 of 16 (10 complete) Hw Score: 39.29%, 11 of 28 p Problem S5

Question

Score: 0 of 6 pts 11 of 16 (10 complete) Hw Score: 39.29%, 11 of 28 p Problem S5.11 ueled school buses. "Theyý're healthier, they're cleaner burming, and they're much quieter than the diesel option, said a schoo y 25%compared to gasoinepowered buses and 4% compared to desel ones. But tey oome at premium-S98,0°for a ordering 57 propane-f The propane bus and rural. Which bus is the better choice based on a life-cycle analysis? The total of using one propan eteed bus vs. 13 mpg for diesel. The life of a school bus in the district averages 8 years, and each bus travels an average of 33,000 miles per year because the district is so large GH

Explanation / Answer

Life time cost analysis

Purchasing cost = & 98,000

Operating cost = $ 0.34 per mile

Propane fuel cost = $ 2 per gallon

Bus mileage = 14 mpg

Life of bus = 8 years

Miles per year = 33000

Operating plus fuel cost per mile = 0.34+2/14 = $ 0.483 per mile

Total cost of using one propane-fueled bus during the life cycle = Life time * Miles per year * operating plus fuel cost per mile + purchase cost

= 8*33000*0.483+98000

= $ 225,474

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