A garbage truck costs $250,000 new, has a 5 year lifetime, and requires $10,000 per year in maintenance. At the end of the life the truck has a salvage value of $50,000. The 3 person crew works 8 hours 5 days a week 260 days a year and make $20 per hour per person plus 50 % in benefits. A 14.4 yd3 truck collects trash from 300 houses per day. Each household generates 50 lbs of refuse per week. With stop and go driving the truck gets 2 miles per gallon and fuel costs $2.50 per gallon. The truck requires $10,000 in maintenance per year. The truck drives 50 miles per day. Determine the cost that should be charged per household per year. Assume interest rates over the next 5 years average 6%. Add 20 % to the household fee for assorted tipping fees, administration, etc.

a. $142.50 per yr

b. $159.32 per yr

c. $164.29 per yr

d. $173.33 per yr

Answer: _____