PROBLEM E: Use the following to answer questions 26 - 28: Carson City is buying new buses and has to select from two mod

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PROBLEM E: Use the following to answer questions 26 -28:
Carson City is buying new buses and has to select fromtwo models. Model A (diesel bus) costs $80,000 to buy, with a fuelefficiency of 10 miles/gallon. Its operating cost is $0.28/mile.Model B (a hybrid bus) costs $105,000 to purchase but gets anaverage of 35 miles/gal. Its operating cost is $0.32/mile. Theannual distance traveled is 25,000 miles, and the expected servicelife of either bus is 10 years. The average diesel price is$2.50/gallon.
E1.) The total life cycle cost for Bus A (in $) is:
a. 237,500
b. 243,750
c. 231,250
d. 238,750
e. 212,500
E2.)
The total life cycle cost for Bus B (in $) is:
a. 202,857
b. 224,773
c. 219,091
d. 229,432
e. 217,143
E3.)
How many miles does each bus have to travel for the life cyclecosts to be equal:
a. 233,051
b. 180,412
c. 165,563
d. 121,107
e. 139,949