Carson City is buying new buses, and has to select from two models. Model A (diesel bus) costs $90,000 to buy, with a fu

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Carson City Is Buying New Buses And Has To Select From Two Models Model A Diesel Bus Costs 90 000 To Buy With A Fu 1 (54.33 KiB) Viewed 73 times

Carson City is buying new buses, and has to select from two models. Model A (diesel bus) costs $90,000 to buy, with a fuel efficiency of 10 miles/gallon. Its operating cost is $0.28/mile. Model B (a hybrid bus) costs $115,000 to purchase, but gets an average of 22 miles/gal. Its operating cost is $0.35/mile. The annual distance traveled is 25,000 miles, and the expected service life of either bus is 10 years. The average diesel price is $4.25/gallon. 12. The total life cycle cost for Bus A (in $) is: a. 253,750 b. 241,280 c. 231,250 d. 266,250 e. 212,500 13. The total life cycle cost for Bus B (in $) is: a. 212,857 b. 250,795 c. 209,991 d. 239,432 e. 229,432 14. How many miles does each bus have to travel for the life cycle costs to be equal: a. 233,051 b. 180,412 c. 154,494 d. 141,527 e. 139,949 15. What is the crossover point in years: a. 4.84 b. 6.18 c. 7.21 d. 3.82 e. 9.32 5 of 5